The profit per sale is a measure of
Cash flow
Profitability
Feasibility
Liquidity
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
_______ increases and decreases with the volume of output .
Fixed cost
Variable cost
Total cost
Money cost
If marginal product is below average product .
Fall
Rise
Constant
Slowly rise
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 revenue equals marginal costs .
No profit is being made .
Total revenue equals total cost.
Profits are maximised .
Producing another unit would increase profit .
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
_______ cannot be changed in the short period .
Production cost
Variable cost.
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
The average variable cost curve
Is derived from the average fixed costs
Converges with the average cost as output increases
Equals the total costs divided by the output
Equals revenue minus profits
