The increase in total cost when one more unit is produced is known as ?

Related Mcqs:

1. The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true ?

   A. The average cost increase from Rs20 to Rs30
   B. The total costs for 11 units are Rs700
   C. The average cost for 10 units is Rs1300
   D. The average cost for 11 units is Rs1300

2. If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

   A. be flat (horizontal)
   B. slope upward
   C. slope downward
   D. be U-shaped.

3. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

4. The multiple by which total deposits can increase for every pound increase in reserves is the ?

   A. Money multiplier
   B. liquidity ratio
   C. bank’s line of credit
   D. required reserve ratio

5. Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

   A. decrease; decrease
   B. increase; decrease
   C. decrease; increase
   D. increase; increase

6. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

   A. greater than average cost, greater than average cost
   B. less than average cost, greater than average cost
   C. less than average cost, less than average cost
   D. greater than average cost, less than average cost

7. In an economy measuring (1) total value added (2)total spending on final goods and (3)total factor earning gives the result that ?

   A. 3>2>1
   B. 3=2=1
   C. 3<2<1
   D. any measure can be larger or smaller than any other

8. The total cost to society of producing an additional unit of a good or service is the ?

   A. marginal damage cost
   B. marginal social cost
   C. marginal private cost
   D. marginal external cost

9. The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?

   A. Pareto goods
   B. public goods
   C. private goods
   D. free goods

10. A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

    A. £35
    B. £15
    C. £30
    D. £60