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
Related Mcqs:
- 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 - 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 - 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 - Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?
A. purchase; decrease
B. purchase; increase
C. sell; increase
D. sell; decrease - 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 - In price discrimination, which section of the market is charged the higher price ?
A. The section with the richest people
B. The section with the oldest people
C. The section with the most inelastic demand
D. The section with the most elastic demand - As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
A. real balance effect
B. menu costs of inflation
C. money illusion.
D. cost-push inflation. - Higher export demand __________ output and a higher MPZ __________ output?
A. reduces, reduces
B. reduces, increase
C. increase, reduces
D. increases, increases - If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?
A. progressive
B. regressive
C. value added taxes (VAT)
D. excise taxes - The average variable cost curve ?
A. is derived from the average fixed costs
B. Converges with the average cost as output increases
C. Equals the total costs divided by the output
D. Equals revenue minus profits