When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

Related Mcqs:

1. If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

   A. be flat (horizontal) B. slope upward C. slope downward D. be U-shaped....

2. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points B. When they are declining C. When they are increasing D. When marginal revenue is zero...

3. If marginal cost is positive and falling ?

   A. Total cost is falling B. Total cost is increasing at a falling rate C. Total cost is falling at a falling rate D. Total cost is increasing at an increasing rate...

4. During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?

   A. rise B. fall C. not changes D. fluctuates...

5. 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...

6. In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

   A. Upward-sloping portion of the average total cost curve B. upward-sloping portion of the average variable cost curve C. portion of the marginal cost curve that lies above the average total cost curve. D. entire marginal cost curve. E. portion of the marginal-cost curve that lies above the average variable cost curve...

7. If marginal benefit is greater than marginal cost, a rational choice involves ?

   A. no more of the activity. B. less of the activity C. more of the activity D. more or less, depending on the benefits of other activities...

8. If both marginal cost and marginal revenue increase, a firm ?

   A. Should increase output B. Should reduce output C. will require further information on how to respond D. Should not change output...

9. When marginal revenue equals marginal cost ?

   A. Total revenue equals total cost B. There is the biggest positive difference between total revenue and total cost C. There is the biggest negative difference between total revenue and total cost D. Profits are Zero...

10. If marginal revenue equals marginal cost ?

    A. No profit is being made B. Total revenue equals total cost C. Profits are maximised D. Producing another unit would increase profits...