When internal economies of scale occur?
Total costs fall
Marginal costs increase
Average costs fall
Revenue falls
The profit per sale is a measure of
Cash Flow
Profitability
Feasibility
Liquidity
Wages is __________ cost of the production.
Fixed
Variable
Opportunity
Marginal
If marginal product is below average product:
The total product will fall
The average product will fall
Average variable costs will fall
Total revenue will fall
If the marginal revenue is less than the marginal cost than to profit maximum a firm should:
Reduce Output
Increase Output
Leave output where it is
Increase Costs
Average revenue is always __________ the price of the commodity.
More than
Equal to
Lesser than
More or lesser than
__________ increases and decreases with the volume of output.
Fixed Cost
Variable Cost
Total Cost
Money Cost
_________ are short run cost.
AC
MC
TC
All the above
If all the units of the product are sold at the same price average revenue will be __________ marginal revenue.
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
