When marginal revenue equals marginal cost ?

Related Mcqs:

1. For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

   A. The United States to Japan causing the dollar to depreciate
   B. The United States to Japan causing the dollar to appreciate
   C. The Japan to United States, causing the dollar to depreciate
   D. The Japan to United States, causing the dollar to appreciate

2. 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

3. 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

4. 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.

5. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

   A. the United States to Switzerland causing the dollar to depreciate
   B. the United States to Switzerland causing the dollar to appreciate
   C. Switzerland to the United States causing the franc to depreciate
   D. Switzerland to the United States causing the franc to appreciate

6. 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

7. 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

8. An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?

   A. reduces; reduces
   B. reduces; increases
   C. increases; increases
   D. increases; reduces

9. If a marginal revenue exceeds marginal cost, a monopolists should?

   A. increase should
   B. decrease output
   C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost
   D. raise the price

10. 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