| 1 |
Total fixed cost curve is . |
- A. Parallel to the vertical axis
- B. Parallel to the horizontal axis
- C. Sloping downward to the right
- D. Sloping upward to the right
|
| 2 |
When AC curve rises, MC curve remains: |
- A. Above AC
- B. Below AC
- C. Equal AC
- D. Negative
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| 3 |
Change in total cost on the production of one additional unit of output is calculated as . |
- A. Marginal cost
- B. Average cost
- C. Total cost
- D. Marginal product
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| 4 |
Long rum is a period |
- A. three years or longer
- B. long enough to allow firms to change plant size and capacity
- C. in which a firm need not get loans
- D. which affects larger more than smaller firms
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| 5 |
Which on of the following represents fixed cost: |
- A. Price of raw material
- B. Wages
- C. Interests on loan
- D. Rent of land
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| 6 |
Long run cost curves can be termed as. |
- A. V-shaped
- B. U-shaped
- C. Oval-shaped
- D. Dish-shaped
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| 7 |
In monopoly at various output levels |
- A. AR = MR
- B. AR < MR
- C. AR > MR
- D. AR and MR curves are parallel
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| 8 |
All factors of productions are variable in the: |
- A. Marked period
- B. Short period
- C. long period
- D. None of the three
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| 9 |
As output increase, one of the following costs will also increase: |
- A. Marginal cost
- B. Average cost
- C. Variable cost
- D. Fixed cost
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| 10 |
Long run average cost curve is : |
- A. U shaped
- B. L shaped
- C. Dish shaped
- D. None of the three
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