The average variable cost curve ?

A. Is derived from the average fixed costs
B. Converges with the average cost as output increases
C. Equals the total costs divided by the output
D. Equals revenue minus profits

Total increases 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 falls
C. Variable cost rises by rs100
D. Average fixed cost is rs10

If marginal product is below average product ?

A. The total product will fall
B. The average product will fall
C. Average variable cost will fall
D. Total revenue will fall

If the price is less than the average costs but higher than the average variable costs ?

A. The firm is making a loss and will shutdown in the short term
B. The firm is making a profile
C. The firm is making a loss but will continue to produce in the short term
D. The firm is making a loss and is making a negative contribution to fixed costs

In the long term a firm will produce provided the revenue covers ?

A. Fixed costs
B. Variable costs
C. Total costs
D. Revenue

The profit per sale is a measure of ?

A. Profit
B. Profitability
C. Feasibility
D. Realism

Total revenue equals ?

A. Price plus quantity
B. Price multiplier by quantity sold
C. Price divided by the quantity sold
D. Price minus quantity sold

If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs The opportunity cost of the 5th B is ?

A. 7as
B. 10as
C. 3as
D. 1a

The resources in the economy do not include ?

A. Demand
B. Land
C. Labour
D. Capital

Any combination of products inside the production possibility frontier is ?

A. Allocatively inefficient
B. X inefficient
C. Consumer inefficient
D. Productively inefficient