A. covers fixed costs
B. covers variable costs
C. covers total costs
D. covers revenue
Related Mcqs:
- In the long term a firm will produce provided the revenue covers ?
A. Fixed costs
B. Variable costs
C. Total costs
D. Revenue - To maximise sales revenue a firm should produce where ?
A. Marginal cost is zero
B. Marginal revenue is maximised
C. Marginal revenue is zero
D. Marginal revenue equals marginal cost - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
A. decreased production
B. maintained production at the current level
C. temporarily shut down.
D. increased production - There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?
A. Mutual arrangement
B. Quid Pro quo
C. Bilateral arrangement
D. common interest - A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
A. marginal costs
B. fixed costs
C. variable costs
D. advertising costs - In the short run a firm will produce zero output if ?
A. price is greater than short run average total cost
B. price is between short run average total cost and short run average variable cost
C. price is less than short run average variable cost
D. profit is zero - The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?
A. have few substitutes.
B. are normal goods
C. have few complementary goods.
D. have many complementary goods. - 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 - In the short run firms in perfect competition will still produce provided ?
A. The price covers average variable cost
B. The price covers variable cost
C. The price covers average fixed cost
D. The price covers fixed costs - Term the covering of a short position by purchasing a long contract, usually resulting from the short of a commodity ?
A. Short-positioning
B. Buyback
C. Drawback
D. None of them
