A. fixed costs exceed revenues.
B. it is suffering a loss.
C. variable costs exceed revenues
D. total costs exceed revenues
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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 ?
0
The formula for average variable cost (AVC) is ?
A. £35
B. £15
C. £30
D. £60
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A graph showing all the combinations capital and labor available for a given total cost is the ?
A. DTVC/Dq
B. q/TVC
C. Dq/DTVC
D. TVC/q
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A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
A. expenditure set
B. isocost line.
C. budget constraint
D. isoquant
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Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
A. an indifference curves.
B. an isoquant.
C. an isocost line
D. a production functions
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If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?
A. downward sloping to the right
B. U-shaped
C. Horizontal
D. upward sloping to the right
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Diminishing marginal return implies ?
A. 160; 270
B. 10; 30
C. 10; 3.33
D. 30; 10
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The costs that depend on output in the short run are ?
A. decreasing average fixed costs.
B. decreasing marginal costs.
C. decreasing average variable costs.
D. increasing marginal costs.
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Which statement is False ?
A. total fixed cost only.
B. total variable costs only.
C. both total variable costs and total costs.
D. total costs only
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