An increase in costs will ?

Related Mcqs:

1. Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?

   A. current profit maximization
   B. product quality leadership
   C. Market share leadership
   D. Survival

2. By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

   A. The prices of trade goods to be lower than when there are no transportation costs
   B. specialization to stop when the production costs of the trading partners equalize
   C. The volume of trade to be less than when there are no transportation costs
   D. The gains from trade to be greater than when there are no transportation costs

3. If the price is less than the average costs but higher than the average variable costs ?

   A. The firm is making a loss and will shutdown in the short term
   B. The firm is making a profile
   C. The firm is making a loss but will continue to produce in the short term
   D. The firm is making a loss and is making a negative contribution to fixed costs

4. 3M runs a Pollution a Prevention Pays program that has led to a substantial reduction in pollution and costs this would be an example of responding and costs. This would be an example of responding to which of the following ?

   A. Nader’s raiders
   B. The green movement
   C. Governmental regulation
   D. International competition

5. If marginal costs equal average total costs ?

   A. average total cost is falling
   B. average total cost is raising
   C. average total cost is maximized
   D. average total cost is minimized

6. When marginal costs are below average total costs ?

   A. average fixed cost is rising
   B. average total cost is falling
   C. average total cost is raising
   D. average total cost is minimized

7. If a firm wage costs increase this will cause __________ and __________?

   A. marginal cost to increase, output to fall
   B. marginal revenue to increase output to fall
   C. opportunity cost to increase the firm will close
   D. average cost will rise output will increase ____ output and an upward shift in marginal revenue ____ output

8. An increase in the costs of production will ?

   A. Shift demand outwards
   B. Shift demand inwards
   C. Shift supply outwards so more is supplied at each and every price, all other things unchanged
   D. Shift supply inwards

9. Total increase from Rs500 to Rs600 When output increases from 20 to 30 units Fixed costs are Rs200 Which of the following is true ?

   A. Marginal cost is Rs20
   B. Average cost rises
   C. Variable cost rises by Rs200
   D. Average fixed cost was Rs10originally

10. 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