MCQ TEST

Which of the following curve also represents price line?

• a. Marginal revenue curve

• b. Marginal cost curve

• c. Average cost curve

• d. Average revenue curve

When marginal revenue is zero, total revenue is---

• a. Maximum

• b. Minimum

• c. Zero

• d. Decreasing

Total revenue equals -----

• a. Price divided by total quantity sold

• b. Price plus Total quantity

• c. Price minus total quantity

• d. Price multiplied with total quantity sold

A formula for the calculation of Marginal Revenue is---

• a. Total revenue divided by quantity sold

• b. Change in total revenue divided by change in quantity sold

• c. Total revenue multiplied by average revenue

• d. Average revenue multiplied by price

When marginal revenue becomes negative, the total revenue--

• a. Decreases

• b. Increases

• c. Remains constant

• d. Becomes zero

Total cost is obtained by adding

• a. Total variable cost and total fixed cost

• b. Marginal cost and average cost

• c. Total variable cost and average cost

• d. Average cost plus total fixed cost

______________ is that part of the total cost which does not change with output

• a. Total variable cost

• b. Marginal cost

• c. Average cost

• d. Total Fixed cost

Which of the following is an example of the fixed cost?

• a. Contractual rent

• b. Cost of raw material

• c. Cost of water

• d. Transport cost

Which of the following cost is also known as ‘Overhead cost’?

• a. Marginal cost

• b. Average cost

• c. Total fixed cost

• d. Total variable cost

Which of the following is also known as ‘Prime Cost’?

• a. Average cost

• b. Total variable cost

• c. Average variable cost

• d. Total fixed cost