Normal profit occurs when ?

A. Average revenue equals average variable cost
B. Marginal revenue equals marginal cost
C. Average revenue equals marginal cost
D. Average revenue equals average cost

Companies in the private sector are owned by ?

A. The government
B. Shareholders
C. Employees
D. The community

In perfect price discrimination ?

A. The demand curve is the marginal cost curve
B. The average revenue equals the average cost
C. The marginal cost is the average cost curve
D. The demand curve is the marginal revenue

For a firm operating in two markets and price discriminating the profit maximising condition is ?

A. Marginal revenue in a= price b
B. Marginal revenue in a = marginal revenue b = price a = price b
C. Marginal revenue in a = marginal revenue b = marginal cost
D. Marginal revenue in a = marginal revenue b = average cost

If marginal revenue equals marginal cost ?

A. No profit is being made
B. Total revenue equals total cost
C. Profits are maximised
D. Producing another unit would increase profits

If marginal cost is positive and falling ?

A. Total cost is falling
B. Total cost is increasing at a falling rate
C. Total cost is falling at a falling rate
D. Total cost is increasing at an increasing rate

Total increase from Rs500 to Rs600 When output increases from 20 to 30 units Fixed costs are Rs200 Which of the following is true ?

A. Marginal cost is rs20
B. Average cost rises
C. Variable cost rises by rs200
D. Average fixed cost was rs10originally

If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?

A. Reduce output
B. Increase output
C. Leave output where it is:
D. Increase costs

If firms earn normal profits ?

A. They will aim to leave the industry
B. Other firms will join the industry
C. The revenue equal total costs
D. No profit is made is accounting terms

In the short term a firm will produce provided the revenue ?

A. Covers fixed costs
B. Covers variable costs
C. Covers total costs
D. Covers revenue