Average fixed cost
Never becomes zero
Curve never touches x axis
Curve never touches y axis
All the above
If the marginal revenue is less than the marginal cost then to profit maximize a firm should
Reduce output
Increase output
Leave output where it is
Increase costs
It total revenue is divided by the units sold , we shall get
Total revenue .
Average revenue
Marginal revenue .
Total profit
If marginal product is below average product .
Fall
Rise
Constant
Slowly rise
Economic profit is the difference between total revenue and
Average cost
Marginal cost
Economic cost
Total cost
In the long term a firm will produce the revenue covers
Fixed costs
Variable costs
Total costs
Sales
Which one of the following statement is true ?
If the marginal cost is greater than the average cost the average cost falls
If the marginal cost is greater than the average cost the average cost increases.
If the marginal cost is positive total costs are maximised.
If the marginal cost is negative total costs increase at a decreasing rate if output increases.
If marginal cost is positive and falling
Total cost is falling
Total cost is increasing at a falling rate
Total cost is falling at a falling rate
Total cost is increasing at an increasing rate
If law of diminishing return is in operation average cost
Decreases
Increases
Remains constant
Decreases slowly
According to the law of diminishing returns
The marginal product eventually falls as more units of a variable factor are added to a fixed factor
Marginal utility falls as more units of a product are consumed
The total product falls as more units of a variable factor are added to a fixed factor
The marginal product eventually increases as more units of a variable factor are added to a fixed factor
