question archive MCQ-1: Which expression is another way of saying "marginal cost"? * a
MCQ-1: Which expression is another way of saying "marginal cost"? * a
Subject:BusinessPrice: Bought3
MCQ-1: Which expression is another way of saying "marginal cost"? *
a. sum of fixed and variable costs
b. difference of total cost and variable costs
c. difference of total cost and fixed cost
d. additional cost of producing one more unit
e. None above
MCQ-2: In a perfectly competitive market, the profit-maximizing level of output for a firm is determined when
a. Total revenue is higher than total cost of production
b. Price equals average total cost.
c. Price equals average variable cost of producitn
d. Marginal revenue equals Marginal cost of production.
MCQ-3: If firms doing business in market are price takers, this implies
a. They have no control on the costs of production
b. They are operating in a competitive market situation.
c. They are making huge profit
d. There are only a few firms in the market
MCQ-4: The objective of break-even analysis is
a. To find the quantity at which firm's profit will be maximized
b. To determine the price which will maximize firm's profit
c. To enumerate the quantity below which the firm will make a loss
d. To determine the situation when all products produced by the firm will be sold
MCQ-5: From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:
a. marginal cost of waiting is less than the marginal benefit of being served.
b. marginal cost of waiting is greater than the marginal benefit of being served.
c. management is exhibiting irrational behaviour by not maximizing profits.
d. management is making an assumption that other things are equal.
