Which one of the following statements is true?
If the marginal cost is greater than 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 maximized
If the marginal cost is negative total costs increase at a decreasing rate of output increases
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
Revenue received from the sale of additional unit is termed as
Average Revenue
Marginal Revenue
Total Revenue
Profit
When internal economies of scale occur?
Total costs fall
Marginal costs increase
Average costs fall
Revenue falls
If firms earn normal profits :
They will aim to leave the industry
Other firms will join the industry
The total revenue equal total costs
No profit is made in accounting terms
__________ increases and decreases with the volume of output.
Fixed Cost
Variable Cost
Total Cost
Money Cost
Average revenue is always __________ the price of the commodity.
More than
Equal to
Lesser than
More or lesser than
If all the units of the product are sold at the same price average revenue will be __________ marginal revenue.
If total units sold of the commodity are multiplied by the cost per unit of the commodity we shall get
The profit per sale is a measure of
Cash Flow
Profitability
Feasibility
Liquidity