Total, Average and Marginal Revenue

Q.

Write the formula of market price?

Q. Why are total cost curve and variable cost curve parallel to each other?

Q. A competitive firms MC curve and AVC curve are given. Show which region of the curves show the firm's supply curve in the short run?

1. Region HE
2. Region EG
3. Region EF
4. Region IE

Q. The average fixed cost curve does not touch the output axis because __________.

1. none of the above
2. AFC cannot be negative
3. AFC cannot be zero
4. AFC cannot be less than one

Q. When the law of diminishing returns begins to operate, the total variable cost curve begins to ____________.

1. rise at an increasing rate
2. rise at a decreasing rate
3. fall at a decreasing rate
4. fall at an increasing rate

Q. The marginal product curve is above the average product curve when the average product is _____________.

1. decreasing
2. increasing
3. becomes constant
4. none of the above

Q. Under perfect competition, 'average revenue' and 'marginal revenue' are indicated by ____________.

1. a common horizontal straight line
2. a common vertical straight line
3. a common rectangular hyperbola
4. different lines sloping downward

Q. A concave PPC implies _______.

1. increasing marginal cost.
2. increasing marginal opportunity cost
3. decreasing marginal opportunity cost
4. constant marginal opportunity cost

Q. Which of the following market situation explains Marginal Cost equal to Price for attaining equilibrium?

1. Monopoly.
2. Perfect Competition.
3. Oligopoly.
4. Monopolistic Competition.

Q.

What is the Average Income of Every Indian ?

Q. Under perfect competition, if the prevailing price is such that the price line is tangent to the minimum point of the average cost curve than the firm would __________.

1. make only normal profit
2. profit cannot be determined.
3. incur losses
4. make normal profit

Q. If marginal opportunity cost is falling, the PPF would be _________.

1. backward bending
2. straight line
3. concave
4. convex

Q. Which of the following is not a condition at the level of output where profit is maximised?

1. Market price = marginal cost
2. Marginal cost is decreasing
3. In the short run, the market price $\ge$ average variable cost
4. In the long run, the market price $\ge$ average cost

Q.

Q. What will be the effect of the following on the Accounting Equation?

i) Harish started business with cash 1, 80, 000.

ii) Purchased goods for cash 60, 000 and on credit 30, 000.

iii) Sold goods for cash 40, 000; costing 24, 000.

iv) Rent paid 5, 000 and rent outstanding 2, 000.

v) Sold goods on credit 50, 000 (costing 38, 000)

vi) Salary paid in advance 3, 000.

Q. Which of the following is a feature of a perfectly competitive firm?

1. Average Revenue is always equal to Marginal Revenue
2. Marginal Revenue and Average Revenue are never equal
3. Marginal Revenue is more than Average Revenue
4. Average Revenue is more than Marginal Revenue

Q. what is the shape of supply curve

Q. On account of the law of ______, the average variable cost curve is U-shaped.

1. variable proportions
2. demand
3. supply
4. diminishing marginal rate of substitution

Q. Long run equilibrium of a firm in perfect competition is reached when _________.

1. AC=MR
2. Total cost=total revenue
3. MC=MR
4. Price=Average cost=Marginal cost

Q. Average variable cost curve at first _______________.

1. falls and then rises
2. rises and continues to rise
3. rises and then falls
4. falls and continues to fall