A. average fixed cost
B. average total cost
C. average variable cost
D. marginal cost
Related Mcqs:
- An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?
A. a fixed cost monopoly
B. a natural monopoly
C. a government franchise monopoly
D. a economies of scale monopoly - If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of ?
A. a nonlinear relationship
B. a positive linear relationship
C. a scatter diagrams
D. a negative linear relationship - Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
A. downward sloping to the right
B. U-shaped
C. Horizontal
D. upward sloping to the right - If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?
A. Efficient scale
B. Average efficient scale
C. Maximum efficient scale
D. Minimum efficient scale - Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?
A. at the efficient scale and charge a price equal to marginal cost
B. at the efficient scale and charge a price above marginal cost
C. With excess capacity and charge a price above marginal cost
D. With excess capacity and charge a price equal to marginal cost - If a production function exhibits constant returns to scale ?
A. doubling all of the inputs more than doubles output due to the catch-up effect
B. doubling all of the inputs has absolutely no impact on output because output is constant
C. doubling all of the inputs less than doubles output due to diminishing returns
D. doubling all of the input’s doubles output - Short-run equilibrium output means that aggregate demand __________ actual output?
A. is less than
B. equals
C. is greater than
D. fluctuates around - An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?
A. reduces; reduces
B. reduces; increases
C. increases; increases
D. increases; reduces - Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?
A. average costs to remain constant
B. average costs to decrease
C. average costs to increase
D. marginal costs to increase - Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?
A. decrease; decrease
B. increase; decrease
C. decrease; increase
D. increase; increase
