If marginal costs equal average total costs ?

Related Mcqs:

1. 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

2. 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

3. 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.

4. 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. 160; 270
   B. 10; 30
   C. 10; 3.33
   D. 30; 10

5. 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

6. 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

7. 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

8. 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

9. If marginal benefit is greater than marginal cost, a rational choice involves ?

   A. no more of the activity.
   B. less of the activity
   C. more of the activity
   D. more or less, depending on the benefits of other activities

10. If both marginal cost and marginal revenue increase, a firm ?

    A. Should increase output
    B. Should reduce output
    C. will require further information on how to respond
    D. Should not change output