Total revenue equals
Price plus the quantity
Price multiplied by the quantity sold
Price divided by the quantity sold
Price minus the quantity sold
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 .
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
Average fixed cost
Never becomes zero
Curve never touches x axis
Curve never touches y axis
All the above
_______ increases and decreases with the volume of output .
Fixed cost
Variable cost
Total cost
Money cost
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.
_______ cannot be changed in the short period.
Production cost
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.
Economic profit is the difference between total revenue and
Average cost
Marginal cost
Economic cost
Total cost .
The profit per sale is a measure of
Cash flow
Profitability
Feasibility
Liquidity
