A. Marginal revenue = marginal product
B. Marginal cost = marginal product
C. Marginal revenue product = average cost of labour
D. Marginal revenue product = marginal cost of labour
Related Mcqs:
- 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 - For a firm operating in two markets and price discriminating the profit maximising condition is ?
A. Marginal revenue in A= Price B
B. Marginal revenue in A = Marginal revenue B = Price A = Price B
C. Marginal revenue in A = Marginal revenue B = Marginal cost
D. Marginal revenue in A = Marginal revenue B = Average cost - A profit maximising firm will invest up to the level of investment where ?
A. The cost of borrowing equals the marginal efficiency of capital
B. The cost of borrowing is greater than the marginal efficiency of capital
C. The cost of borrowing is less then the marginal efficiency of capital
D. The cost of borrowing equals the marginal propensity to consume - In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?
A. total labour cost
B. the marginal product
C. the price of the product
D. the wage rate - A profit-maximizing firm will hire labour until _____ equals the _______?
A. marginal revenue, marginal cost
B. long run marginal revenue, long run marginal cost
C. labor output ratio, capital output ratio
D. marginal cost of labor, marginal revenue product - A firm that makes profit in addition to normal profit is making ?
A. Economic profit
B. Accounting profit
C. Normal profit
D. supernormal profit - For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?
A. supply curve of capital
B. demand curve for capital
C. production function
D. marginal cost curve - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
A. decreased production
B. maintained production at the current level
C. temporarily shut down.
D. increased production - 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 - In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?
A. The average cost of labour
B. The marginal product
C. The marginal revenue
D. The total cost of labour
