Total increase from Rs500 to Rs600 When output increases from 20 to 30 units Fixed costs are Rs200 Which of the following is true ?

Related Mcqs:

1. Total increases from Rs500 to Rs600 when output increases from 20 to 30 units. Fixed costs are Rs200 Which of the following is true ?

   A. Marginal cost is Rs20
   B. Average cost falls
   C. Variable cost rises by Rs100
   D. Average fixed cost is Rs10

2. Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike ?

   A. Rs500
   B. Rs300
   C. Rs200
   D. Rs400

3. 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

4. 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

5. 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

6. The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true ?

   A. The average cost increase from Rs20 to Rs30
   B. The total costs for 11 units are Rs700
   C. The average cost for 10 units is Rs1300
   D. The average cost for 11 units is Rs1300

7. An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

   A. +2
   B. +0.5
   C. -2
   D. -0.5

8. 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

9. Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?

   A. There may be long lines of buyers waiting for apartments
   B. Landlords may discriminate among apartment renters
   C. Landlords may be offered bribes to rent apartments
   D. there will be a storage of housing
   E. the quality of apartments will improve

10. If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?

    A. Saving = Rs 300 investment = Rs 300
    B. Saving = Rs 200 investment = Rs 100
    C. Saving = Rs 100 investment = Rs 200
    D. Saving = Rs 0 investment = Rs 0