A. Marginal cost is zero
B. Marginal revenue is maximised
C. Marginal revenue is zero
D. Marginal revenue equals marginal cost
Related Mcqs:
- If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?
A. Reduce output
B. Increase output
C. Leave output where it is:
D. Increase costs - To maximise growth without making a loss a firm should produce the highest output where ?
A. Average revenue equals marginal cost
B. Average revenue equals average cost
C. Marginal revenue equals marginal cost
D. Average cost equals marginal cost - In the long term a firm will produce provided the revenue covers ?
A. Fixed costs
B. Variable costs
C. Total costs
D. Revenue - In the short term a firm will produce provided the revenue ?
A. covers fixed costs
B. covers variable costs
C. covers total costs
D. covers revenue - 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 - You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?
A. Rs 300
B. Rs 1000
C. Rs 500
D. Rs 800 - 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 - 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. - 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
