| 1 |
When AC curve rises, MC curve remains: |
- A. Above AC
- B. Below AC
- C. Equal AC
- D. Negative
|
| 2 |
In monopoly at various output levels |
- A. AR = MR
- B. AR < MR
- C. AR > MR
- D. AR and MR curves are parallel
|
| 3 |
The cost which a firm incurs for purchasing or hiring factors is called |
- A. implicit
- B. explicit
- C. real
- D. basic
|
| 4 |
Variable cost of production are also called. |
- A. Fixed cost
- B. Supplementary cost
- C. Total variable cost
- D. Prime cost
|
| 5 |
Long rum is a period |
- A. three years or longer
- B. long enough to allow firms to change plant size and capacity
- C. in which a firm need not get loans
- D. which affects larger more than smaller firms
|
| 6 |
Change in total cost on the production of one additional unit of output is calculated as . |
- A. Marginal cost
- B. Average cost
- C. Total cost
- D. Marginal product
|
| 7 |
As out put increases, AC curve |
- A. falls
- B. rises
- C. remains constant
- D. all of the above
|
| 8 |
Short run cost curves are. |
- A. v-shaped
- B. Dish-shaped
- C. U-shaped
- D. L-shaped
|
| 9 |
Lowest point on the average cost curve in the long-run represents; |
- A. Optimum factors combination
- B. Maximum level of output
- C. Maximum level of total revenue
- D. None of the three
|
| 10 |
TC |
- A. starts from origin
- B. not from origin
- C. is parallel to y-axis
- D. parallel to x- axis
|
