Total increases 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 increase 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 rises
   C. Variable cost rises by Rs200
   D. Average fixed cost was Rs10originally

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. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?

   A. Rs50
   B. Rs100
   C. Rs650
   D. Rs500

10. An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?

    A. the Rs500 weekly salary that he has forgone to search for another job
    B. The Rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search
    C. Rs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone
    D. Rs0, since he is currently unemployed