Social costs are those costs
Not born by the firms
Incurred by the society
Health hazards
All of the above
_______ is the addition made to the total revenue by selling one more unit of a commodity.
Average revenue
Total revenue
Marginal Revenue
Total cost
________ is the revenue per unit of the commodity sold. It is calculated by dividing the total revenue by the number of units sold.
Average Revenue
Total Revenue
If marginal product is below average product:
The total product fall
The average product will fall
Total revenue will fall
Marginal revenue fall
Average fixed cost is obtained by dividing
TC/Q
TFC/Q
TVC/Q
TFC+Q
If marginal revenue equals marginal cost:
No profit is being made
Total revenue equals total cost
Profit are maximized
Producing another unit could increase profit
Price equals:
Total revenue - quantity
Total revenue / quantity sold
Total quantity sold × quantity sold
Total revenue / total 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
Marginal revenue is the least addition made to the
Total production
The amount of money which the firm recovers by the sale of its output in the market is known as its
Cost
Revenue
Profit