WorksheetsEconomics
Total questions: 8
Worksheet time: 5mins
Which of the following are sufficient to determine the shutdown point of multi commodity firm in the short - run?
A. Variable cost of operations
B. Marginal revenue received
C. Average variable cost of operations
D. Average marginal revenue received
Choose the most appropriate answer from the options given below:
A and B only
C and D only
A, B and C only
B, C and D only
Which two of the following statements are correct?
a) In the short - run, A TFC = O, therefore A TC = A TVC
b) If decrease In AFC < Increase In AVC, then AC decreases c) If decrease In AFC = Increase In AVC, AC remains constant
d) If decreases In AFC > Increase In AVC, then AC Increases Choose the correct answer from the options given below:
a) and c)
b) and c)
b) and d)
a) and d)
In a perfectly competitive market, a firm in the long run operates at the level of output where:
AC = MC when MC is lowest
MC = AR = MR when MC is lowest
MR = MC
AR=MR=AC=MC
Under which of the following situations, economies of scale exists to the potential and persists?
When firm is too small and too specialized
When firms' decision to hire inputs do not result in an increase in the input costs
When firm is too large and overdiversified
When long-run cost of producing a unit falls as the output increases
Assertion A): At times, a business may face a situation where it has to shut down its operations.
Reason R): If the revenue is less than its variable cost, the operation should be closed down.
In the context of the above two statements, which one of the following codes is correct?
A) is correct but R) is not correct
A) and R) both are correct and R) is the right explanation of A
A) and R) both are correct and R) is not the right explanation of A
Both A) and R) are incorrect
X : Long run average cost curve is flat U-shaped.
Y : It is called an envelope curve
Only X is correct
Only Y is correct
Both X and Y are correct
Both X and Y are incorrect
What is the reason behind the upward sloping portion of the long-run cost curve
Diseconomies of scale
Economies of scale
Diminishing marginal return
None of the above
Profits are maximized at a point where
MR = MC
MR < MC
MR > MC
AC > MC
