Economic profit is the difference between total revenue and
Average cost
Marginal cost
Economic cost
Total cost .
If law of diminishing return is in operation average cost
Decreases
Increases
Remains constant
Decreases slowly .
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
The profit per sale is a measure of
Cash flow
Profitability
Feasibility
Liquidity
It total revenue is divided by the units sold , we shall get
Total revenue
Average revenue
Marginal revenue
Total profit
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 .
In the short term a firm will produce provided the revenue.
Covers fixed costs
Covers variable costs
Covers total costs
Covers sales
_______ increases and decreases with the volume of output .
Fixed cost
Variable cost
Total cost
Money cost
_______ cannot be changed in the short period.
Production cost
Total revenue equals
Price plus the quantity
Price multiplied by the quantity sold
Price divided by the quantity sold
Price minus the quantity sold