Average fixed cost
Never becomes zero
Curve never touches x axis
Curve never touches y axis
All the above
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
The law of diminishing returns assumes
There are no fixed factors of production.
There are no variable factors of production .
Utility is maximised when marginal product falls.
Some factors of production are fixed .
It total revenue is divided by the units sold , we shall get
Total revenue
Average revenue
Marginal revenue
Total profit
The profit per sale is a measure of
Cash flow
Profitability
Feasibility
Liquidity
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 law of diminishing return is in operation average cost
Decreases
Increases
Remains constant
Decreases slowly .
Economic profit is the difference between total revenue and
Average cost
Marginal cost
Economic cost
Total cost .
When internal economics of scale occur
Total costs falls
Marginal costs increase
Average costs fall
Revenue fall.
