| 1 |
When AC curve rises, MC curve remains: |
- A. Above AC
- B. Below AC
- C. Equal AC
- D. Negative
|
| 2 |
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
|
| 3 |
Excise tax is a part of |
- A. fixed cost
- B. variable cost
- C. implicit cost
- D. in not a part of cost
|
| 4 |
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
|
| 5 |
TC |
- A. rises continuously
- B. falls then rises
- C. is horizontal to x-axis
- D. is parallel to y-axis
|
| 6 |
Short run cost curves are. |
- A. v-shaped
- B. Dish-shaped
- C. U-shaped
- D. L-shaped
|
| 7 |
Average cost and marginal cost curves in the short-run are: |
- A. Quadratic function
- B. Linear function
- C. Cubic function
- D. Log function
|
| 8 |
As output increases |
- A. MC curve firstly falls then rises
- B. MC firstly rises then falls
- C. MC continuously rises
- D. continuously falls
|
| 9 |
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
|
| 10 |
Short run means is a period |
- A. less than one year
- B. in which at least one input is fixed
- C. in which no input can be changed
- D. in which firms can easily enter or exit
|
