The formula for average fixed costs is ?

Related Mcqs:

1. 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

2. 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

3. 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

4. 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

5. The formula for average variable cost (AVC) is ?

   A. DTVC/Dq
   B. q/TVC
   C. Dq/DTVC
   D. TVC/q

6. 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

7. -7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?

   A. Fewer students will take degree courses in education and more will take accounting courses.
   B. fewer students will take degree courses in education and more will take accounting courses
   C. fewer students will attend university
   D. None of these

8. 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

9. Short run average total costs are equals to the sum of ____ and _____?

   A. Short run opportunity costs, profit
   B. Short run variable costs, profit
   C. Short run average variable costs, profit
   D. Short run average variable costs, profit run average fixed costs

10. 3M runs a Pollution a Prevention Pays program that has led to a substantial reduction in pollution and costs this would be an example of responding and costs. This would be an example of responding to which of the following ?

    A. Nader’s raiders
    B. The green movement
    C. Governmental regulation
    D. International competition