The slope of total variable cost curve equals…………….. (a) AVC ; (b) MC ; (c) AC ; (d) MPP

The slope of total variable cost curve equals…………….. (a) AVC ; (b) MC ; (c) AC ; (d) MPP 
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1 Answer

Answer :

(b) MC ; 
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Related questions

In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Description : In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Last Answer : ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Which of these curve never touch X axis (a) AVC ; (b) AFC ; (c) TC ; (d) MC

Description : Which of these curve never touch X axis (a) AVC ; (b) AFC ; (c) TC ; (d) MC

Last Answer :  (b) AFC ;

Which of the following cannot be U shaped curve (a) AFC curve ; (b) AC curve ; (c) AVC curve ; (d) AMC curve

Description : Which of the following cannot be U shaped curve (a) AFC curve ; (b) AC curve ; (c) AVC curve ; (d) AMC curve

Last Answer : (a) AFC curve ;

If a firm shut down at a level when AVC > Price, the firm restricts its losses to (a) Total fixed cost ; (b) Average fixed cost ; (c) Variable cost ; (d) Average variable cost

Description : If a firm shut down at a level when AVC > Price, the firm restricts its losses to (a) Total fixed cost ; (b) Average fixed cost ; (c) Variable cost ; (d) Average variable cost

Last Answer : (a) Total fixed cost ;

Total cost is the arithmetic sum of (a) AFC and AVC ; (b) FC and Variable cost ; (c) Marginal cost and variable cost; (d) Sunk cost and fixed cost

Description : Total cost is the arithmetic sum of (a) AFC and AVC ; (b) FC and Variable cost ; (c) Marginal cost and variable cost; (d) Sunk cost and fixed cost

Last Answer : (b) FC and Variable cost ;

In the short run, diminishing marginal returns is implied by (a) Rising MC ; (b) Falling MC ; (c) Rising AVC ; (d) Constant TC

Description : In the short run, diminishing marginal returns is implied by (a) Rising MC ; (b) Falling MC ; (c) Rising AVC ; (d) Constant TC

Last Answer : (a) Rising MC ;

.All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve

Description : .All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve

Last Answer : (a) AFC curve

Under perfect market conditions the supply curve of a firm is represented by (a) MC curve ; (b) MR curve ; (c) AR curve ; (d) AC curve

Description : Under perfect market conditions the supply curve of a firm is represented by (a) MC curve ; (b) MR curve ; (c) AR curve ; (d) AC curve 

Last Answer : (a) MC curve ; 

Afirm will close down in the short run, if AR is less than (a) AC (b) AVC © MC (d) none of the above

Description : Afirm will close down in the short run, if AR is less than (a) AC (b) AVC © MC (d) none of the above

Last Answer : (b) AVC

The ideal level of operation for a pure monopoly firm is the level where (a) TR and STC curve are parallel to each other ; (b) TR = TC ; (c) TR = Total variable cost; (d) TR is less than STC

Description : The ideal level of operation for a pure monopoly firm is the level where (a) TR and STC curve are parallel to each other ; (b) TR = TC ; (c) TR = Total variable cost; (d) TR is less than STC 

Last Answer : (a) TR and STC curve are parallel to each other ; 

Total variable cost curve is explained by (a) Law of the diminishing marginal returns ; (b) The price of the variable inputs; (c) Production function ; (d) All the three

Description : Total variable cost curve is explained by (a) Law of the diminishing marginal returns ; (b) The price of the variable inputs; (c) Production function ; (d) All the three 

Last Answer : ; (d) All the three

Which of the following statement is true about average cost function (a) ATC= AFC-AVC ; (b) AVC = AFC + ATC ;(c) AFC = ATC+AVC ;(d) ATC = AFC + AVC

Description : Which of the following statement is true about average cost function (a) ATC= AFC-AVC ; (b) AVC = AFC + ATC ;(c) AFC = ATC+AVC ;(d) ATC = AFC + AVC

Last Answer : ;(d) ATC = AFC + AVC

Super normal profits occurs when (a) Average revenue is more than average cost ; (b) Total revenue is maximum; (c) Total cost is minimum ; (d) MC is equal to MR

Description : Super normal profits occurs when (a) Average revenue is more than average cost ; (b) Total revenue is maximum; (c) Total cost is minimum ; (d) MC is equal to MR 

Last Answer : (a) Average revenue is more than average cost ;

By definition, the marginal propensity to consume (a) Equals ΔC/ΔYd ; (b) Is the behavioral coefficient c in the equation C = a + cYd; (c) Is the slope of the consumption function ; (d) All the above

Description : By definition, the marginal propensity to consume (a) Equals ΔC/ΔYd ; (b) Is the behavioral coefficient c in the equation C = a + cYd; (c) Is the slope of the consumption function ; (d) All the above 

Last Answer : (d) All the above

A typical demand curve will normally have a (a) positive slope ; (b) horizontal slope ;(c) vertical slope ; (d) negative slope

Description : A typical demand curve will normally have a (a) positive slope ; (b) horizontal slope ;(c) vertical slope ; (d) negative slope

Last Answer : (d) negative slope 

According to traditional approach the factor responsible for operation of downward slope of demand curve are (a) Change in number of consumers ; (b) Law of decreasing marginal utility (c) Alternative uses of goods ; (d) All the three

Description : According to traditional approach the factor responsible for operation of downward slope of demand curve are (a) Change in number of consumers ; (b) Law of decreasing marginal utility (c) Alternative uses of goods ; (d) All the three

Last Answer : (d) All the three

The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant

Description : The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant

Last Answer : (a) Increases at higher price ;

The slope of the consumption curve connotes (a) Average propensity to save ; (b) Marginal Propensity to consume ; (c) Marginal propensity to save ; (d) Level of consumption in the economy.

Description : The slope of the consumption curve connotes (a) Average propensity to save ; (b) Marginal Propensity to consume ; (c) Marginal propensity to save ; (d) Level of consumption in the economy. 

Last Answer : (b) Marginal Propensity to consume ;

A competitive firm maximizes its total profit when ……………… (a) Average cost equal average realization ; (b) Marginal cost equals Price; (d) Total revenue is the maximum ; (d) MR = AR

Description : A competitive firm maximizes its total profit when ……………… (a) Average cost equal average realization ; (b) Marginal cost equals Price; (d) Total revenue is the maximum ; (d) MR = AR

Last Answer : (d) Total revenue is the maximum ;

Total profit of a firm in a perfect competitive market is – (a) Total revenue less total cost ; (b) Marginal revenue less marginal cost; (c) Total revenue less marginal cost ; (d) Total revenue less variable cost

Description : Total profit of a firm in a perfect competitive market is – (a) Total revenue less total cost ; (b) Marginal revenue less marginal cost; (c) Total revenue less marginal cost ; (d) Total revenue less variable cost

Last Answer : (a) Total revenue less total cost ;

Breakeven point refers to the situation when (a) Total revenue is equal to total cost ; (b) Total revenue is more than total cost (c) Total revenue is less than total cost ; (d) Total revenue is equal to total variable cost

Description : Breakeven point refers to the situation when (a) Total revenue is equal to total cost ; (b) Total revenue is more than total cost (c) Total revenue is less than total cost ; (d) Total revenue is equal to total variable cost

Last Answer : (a) Total revenue is equal to total cost ;

If total production increases in the short run, the total cost will also…….. (a) Increase due to increase in fixed cost ; (b) Increase due to increase in variable cost (c) Increase due to increase in total cost ; (d) Remain constant

Description : If total production increases in the short run, the total cost will also…….. (a) Increase due to increase in fixed cost ; (b) Increase due to increase in variable cost (c) Increase due to increase in total cost ; (d) Remain constant

Last Answer : (b) Increase due to increase in variable cost

Marginal product is…………. (a) Rate at which total production changes with change in variable input; (b) Rate at which total production changes with change in total cost; (c) Rate at which total production changes with change in fixed cost ; (d) None

Description : Marginal product is…………. (a) Rate at which total production changes with change in variable input; (b) Rate at which total production changes with change in total cost; (c) Rate at which total production changes with change in fixed cost ; (d) None

Last Answer : (a) Rate at which total production changes with change in variable input; 

The demand curve of a Monopoly firm is – (a) Same that of a firm in a perfect competition ; (b) Same as that of the total market demand; (c) Non-exist ; (d) Perfectly elastic

Description : The demand curve of a Monopoly firm is – (a) Same that of a firm in a perfect competition ; (b) Same as that of the total market demand; (c) Non-exist ; (d) Perfectly elastic

Last Answer : (b) Same as that of the total market demand;

A levy of excise duty on consumption of an item consumed will …………….. (a) Induce suppliers to pump in more quantity in the market; (b) Result in fall in the consumption of the commodity and lower total expenditure on it by the consumer ; (c) Lead to inflationary conditions ; (d) Place the consumer on lower indifference curve

Description : A levy of excise duty on consumption of an item consumed will .. (a) Induce suppliers to pump in more quantity in the market; (b) Result in fall in the consumption of the commodity ... by the consumer ; (c) Lead to inflationary conditions ; (d) Place the consumer on lower indifference curve

Last Answer : (d) Place the consumer on lower indifference curve 

When the price is less than the average variable cost, the firm should …………. (a) Continue to operate till the market recover ; (b) Shut down its operation for the time being (c) Retrench workers and pay them compensation; (d) Clear the existing stock at a price less than the prevailing price to beat the competitors

Description : When the price is less than the average variable cost, the firm should . (a) Continue to operate till the market recover ; (b) Shut down its operation for the time being (c) Retrench ... compensation; (d) Clear the existing stock at a price less than the prevailing price to beat the competitors

Last Answer :  (b) Shut down its operation for the time being

A firm faces the shut down situation when (a) Price is less than average variable cost ; (b) Price is more than the average variable cost (c) Price is equal to fixed cost ; (d) Price is more than the average fixed cost

Description : A firm faces the shut down situation when (a) Price is less than average variable cost ; (b) Price is more than the average variable cost (c) Price is equal to fixed cost ; (d) Price is more than the average fixed cost 

Last Answer : (a) Price is less than average variable cost ; 

Marginal cost can be equal to Average variable cost when (a) Average variable cost is falling ; (b) Average variable cost is increasing; (c) Average variable cost is constant ; (d) Under any of the above situations

Description : Marginal cost can be equal to Average variable cost when (a) Average variable cost is falling ; (b) Average variable cost is increasing; (c) Average variable cost is constant ; (d) Under any of the above situations

Last Answer : (c) Average variable cost is constant ;

In economic theory, in the short run all the cost are…………… (a) Fixed ; (b) Variable ; (c) Controllable ; (d) Semi variable

Description : In economic theory, in the short run all the cost are…………… (a) Fixed ; (b) Variable ; (c) Controllable ; (d) Semi variable

Last Answer : (a) Fixed ;

In economics, in the long run all the cost…………. (a) Are fixed ; (b) Are variable ; (c) Except labour are variable ; (d) Are non controllable

Description : In economics, in the long run all the cost…………. (a) Are fixed ; (b) Are variable ; (c) Except labour are variable ; (d) Are non controllable

Last Answer :  (b) Are variable ;

Variable cost is also known as (a) Incremental cost ; (b) Marginal cost ; (c) Differential cost ; (d) All the three

Description : Variable cost is also known as (a) Incremental cost ; (b) Marginal cost ; (c) Differential cost ; (d) All the three

Last Answer :  (d) All the three

Law of returns to scale applies when……… (a) All inputs cost are variable ; (b) All input cost are fixed; (c) All cost are partly fixed and partly variable ; (d) None

Description : Law of returns to scale applies when……… (a) All inputs cost are variable ; (b) All input cost are fixed; (c) All cost are partly fixed and partly variable ; (d) None

Last Answer : (a) All inputs cost are variable ;

For a monopoly firm market demand curve is (a) Marginal revenue curve itself ; (b) Average Revenue curve itself ; (c) Marginal cost curve (d) None

Description : For a monopoly firm market demand curve is (a) Marginal revenue curve itself ; (b) Average Revenue curve itself ; (c) Marginal cost curve (d) None

Last Answer :  (b) Average Revenue curve itself ;

A Monopoly‟s demand curve is (a) Same as its average revenue curve ; (b) Same as its supply curve; (c) Same as its cost curve ; (d) Same as that of the factor inputs

Description : A Monopoly‟s demand curve is (a) Same as its average revenue curve ; (b) Same as its supply curve; (c) Same as its cost curve ; (d) Same as that of the factor inputs

Last Answer : (a) Same as its average revenue curve ;

Change in quantity demanded or Movement along demand curve occurs due (a) Due to change in price only ; (b) Change in Cetris paribus conditions only ; (c) Change in cost of production ; (d) Change in technology

Description : Change in quantity demanded or Movement along demand curve occurs due (a) Due to change in price only ; (b) Change in Cetris paribus conditions only ; (c) Change in cost of production ; (d) Change in technology

Last Answer : (a) Due to change in price only ;

Shift in Demand curve or change in Demand curve occurs due to (a) Increase in price ; (b) Decrease in cost of production ; (c) Change in Cetris paribus conditions ; (d) All the three

Description : Shift in Demand curve or change in Demand curve occurs due to (a) Increase in price ; (b) Decrease in cost of production ; (c) Change in Cetris paribus conditions ; (d) All the three

Last Answer : (c) Change in Cetris paribus conditions ;

Change in cost of production of the concerned goods causes (a) The demand curve to shift ; (b) The supply curve to shift ; (c) Increase in quantity demanded; (d) Decrease in quantity supplied

Description : Change in cost of production of the concerned goods causes (a) The demand curve to shift ; (b) The supply curve to shift ; (c) Increase in quantity demanded; (d) Decrease in quantity supplied 

Last Answer : (b) The supply curve to shift ;

Marginal cost curve is (a) Positively sloped ; (b) Negatively sloped ; (c) Parallel to X axis ; (d) Parallel to Y axis

Description : Marginal cost curve is (a) Positively sloped ; (b) Negatively sloped ; (c) Parallel to X axis ; (d) Parallel to Y axis

Last Answer : (a) Positively sloped

Long run supply curve of a decreasing cost industry is (a) Downward sloping curve ; (b) Upward sloping curve; (c) Straight line parallel to X axis ; (d) Straight line parallel to y axis

Description : Long run supply curve of a decreasing cost industry is (a) Downward sloping curve ; (b) Upward sloping curve; (c) Straight line parallel to X axis ; (d) Straight line parallel to y axis

Last Answer : (a) Downward sloping curve ;

Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line

Description : Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line 

Last Answer : (b) Upward sloping line; 

Long run supply curve of a constant cost industry is (a) Horizontal line at a price that is equal to the long run minimum average cost of production; (b) Horizontal line overlapping X axis ; (c) Vertical line at mid of X axis ; (d) Vertical line overlapping Y axis

Description : Long run supply curve of a constant cost industry is (a) Horizontal line at a price that is equal to the long run minimum average cost of production; (b) Horizontal line overlapping X axis ; (c) Vertical line at mid of X axis ; (d) Vertical line overlapping Y axis 

Last Answer : (a) Horizontal line at a price that is equal to the long run minimum average cost of production; 

The negatively sloped part of long run cost curve of a firm is due to (a) Increase in production due to specialization and division of labour; (b) Diseconomies of scale ; (c) Diminishing returns to scale ; (d) Marginal utility theory

Description : The negatively sloped part of long run cost curve of a firm is due to (a) Increase in production due to specialization and division of labour; (b) Diseconomies of scale ; (c) Diminishing returns to scale ; (d) Marginal utility theory

Last Answer : (a) Increase in production due to specialization and division of labour;

The positively sloped part of long run cost curve of a firm is due to (a) Economies of scale ; (b) Diseconomies of scale; (c) Diminishing returns to scale ; (d) Marginal utility theory

Description : The positively sloped part of long run cost curve of a firm is due to (a) Economies of scale ; (b) Diseconomies of scale; (c) Diminishing returns to scale ; (d) Marginal utility theory

Last Answer : (b) Diseconomies of scale;

If a firms cost of raw material decreases then (a) Marginal cost curve will shift downward ; (b) Marginal cost curve will shift upward (c) Market price will go down ; (d) Market price will go up

Description : If a firms cost of raw material decreases then (a) Marginal cost curve will shift downward ; (b) Marginal cost curve will shift upward (c) Market price will go down ; (d) Market price will go up 

Last Answer : (a) Marginal cost curve will shift downward ;

If a firms cost of raw material increases then (a) Market price of the final product will also increase (b) Equilibrium level of quantity also increases ; (c) Marginal cost curve will shift upward (d) Marginal cost curve will shift downward

Description : If a firms cost of raw material increases then (a) Market price of the final product will also increase (b) Equilibrium level of quantity also increases ; (c) Marginal cost curve will shift upward (d) Marginal cost curve will shift downward

Last Answer : ; (c) Marginal cost curve will shift upward

Personal income equals personal disposable income (Yd) plus (a) Personal savings ; (b) Transfers from government ; (c) Personal income taxes ; (d) Dividend payments

Description : Personal income equals personal disposable income (Yd) plus (a) Personal savings ; (b) Transfers from government ; (c) Personal income taxes ; (d) Dividend payments 

Last Answer : (c) Personal income taxes ;

Law of variable proportion applies……………. (a) When all inputs are variable ; (b) When all input are fixed ; (c) Some inputs are fixed and some are variable ; (d) All the three

Description : Law of variable proportion applies……………. (a) When all inputs are variable ; (b) When all input are fixed ; (c) Some inputs are fixed and some are variable ; (d) All the three

Last Answer : (c) Some inputs are fixed and some are variable ; 

A shift outward in supply curve will result in equilibrium price (a) increasing and quantity increasing ; (b) increasing and quantity decreasing ; (c) decreasing and quantity increasing ; (d) decreasing and quantity decreasing

Description : A shift outward in supply curve will result in equilibrium price (a) increasing and quantity increasing ; (b) increasing and quantity decreasing ; (c) decreasing and quantity increasing ; (d) decreasing and quantity decreasing

Last Answer : (c) decreasing and quantity increasing ;

An improvement in technology would shift (a) the demand curve inward ; (b) the demand curve outward ; (c) the supply curve inward (d) the supply curve outward

Description : An improvement in technology would shift (a) the demand curve inward ; (b) the demand curve outward ; (c) the supply curve inward (d) the supply curve outward

Last Answer : (d) the supply curve outward

At a given time and in a given marketplace, the entire market demand curve indicates the (a) quantity of a good consumers would be willing and able to purchase at a given price. (b) quantity of a good consumers would be able to purchase at a series of prices. (c) quantity of a good consumers want to purchase at a given price (d) quantity of a good consumers have purchased at a series of prices over the year.

Description : At a given time and in a given marketplace, the entire market demand curve indicates the (a) quantity of a good consumers would be willing and able to purchase at a given price. (b) quantity of a ... a given price (d) quantity of a good consumers have purchased at a series of prices over the year.

Last Answer : (b) quantity of a good consumers would be able to purchase at a series of prices.