A. Average revenue is greater than average variable cost
B. Average revenue is greater than average cost
C. Average revenue is greater than marginal revenue
D. Average revenue is greater than average fixed cost
Related Mcqs:
- Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry. - By practicing price discrimination, the firm would realize profits totaling ?
A. $160,000
B. $420,000
C. $540,000
D. $660,000 - In monopoly when abnormal profits are made ?
A. The price set is greater than the marginal cost
B. The price is less than the average cost
C. The average revenue equals the marginal cost
D. Revenue equals total cost - 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 - 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 - Which best describes price discrimination ?
A. Charging different prices for different products
B. Charging the same prices for different products
C. Charging the same prices for same products
D. Charging different prices for the same products - A benefit to consumers of price discrimination is that ?
A. Some products are produced that would not otherwise be produced
B. Producer surplus increases
C. Consumer surplus decreases
D. Firm’s profits increase - In perfect price discrimination ?
A. Consumer surplus is maximised
B. produce surplus is zero
C. Community surplus is maximised
D. Consumer surplus is zero - In perfect price discrimination ?
A. The demand curve is the marginal cost curve
B. The average revenue equals the average cost
C. The marginal cost is the average cost curve
D. The demand curve is the marginal revenue - Suppose that the firms collude and become a cartel The best level of output for the cartel as a whole is ___________ the price equals __________ and profits total __________?
A. 2 million barrels per day, $100, $60 million
B. 4 million barrels per day, $80, $160 million
C. 6 million barrels per day, $60, $60 million
D. 8 million barrels per day, $40, $20 million
