_______ increases and decreases with the volume of output .
Fixed cost
Variable cost
Total cost
Money cost
Total revenue equals
Price plus the quantity
Price multiplied by the quantity sold
Price divided by the quantity sold
Price minus the quantity sold
In the long term a firm will produce the revenue covers
Fixed costs
Variable costs
Total costs
Sales
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
In the short term a firm will produce provided the revenue
Covers fixed costs
Covers variable costs
Covers total costs
Covers sales
It total revenue is divided by the units sold , we shall get
Total revenue .
Average revenue
Marginal revenue .
Total profit
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
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
If the firms earn normal profits
They will aim to leave the industry
Other firms will join the industry
The total revenue equals total costs
No profits is made in accounting terms
