To be Productively efficient a firm must produce where ?

Related Mcqs:

1. If an economy is productively efficient ?

   A. Everyone is wealthy
   B. Resources are unemployed
   C. More of one product can only be produced if less of another product is produced
   D. The distribution of income is eqal

2. To be allocatively efficient a firm must produce where ?

   A. The total cost equals demand
   B. The average revenue equals the marginal revenue
   C. The price equals the average cost
   D. The price equals the marginal cost

3. There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?

   A. Mutual arrangement
   B. Quid Pro quo
   C. Bilateral arrangement
   D. common interest

4. A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?

   A. marginal costs
   B. fixed costs
   C. variable costs
   D. advertising costs

5. The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

   A. have few substitutes.
   B. are normal goods
   C. have few complementary goods.
   D. have many complementary goods.

6. In the long term a firm will produce provided the revenue covers ?

   A. Fixed costs
   B. Variable costs
   C. Total costs
   D. Revenue

7. To maximise growth without making a loss a firm should produce the highest output where ?

   A. Average revenue equals marginal cost
   B. Average revenue equals average cost
   C. Marginal revenue equals marginal cost
   D. Average cost equals marginal cost

8. In the short term a firm will produce provided the revenue ?

   A. covers fixed costs
   B. covers variable costs
   C. covers total costs
   D. covers revenue

9. To maximise sales revenue a firm should produce where ?

   A. Marginal cost is zero
   B. Marginal revenue is maximised
   C. Marginal revenue is zero
   D. Marginal revenue equals marginal cost

10. An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

    A. a fixed cost monopoly
    B. a natural monopoly
    C. a government franchise monopoly
    D. a economies of scale monopoly