* not completed

. Which one of the following statements is true?

If the marginal cost is greater than the average cost the average cost falls correct incorrect

If the marginal cost is greater than the average cost the average cost increases correct incorrect

If the marginal cost is positive total costs are maximized correct incorrect

If the marginal cost is negative total costs increase at a decreasing rate if output increases correct incorrect

* not completed

. According the law of diminishing returns:

The marginal product of a variable factor eventually falls as more units of it are added to a fixed factor correct incorrect

Marginal utility falls as more units of a product are consumed correct incorrect

The total product falls as more units of a variable factor are added to a fixed factor correct incorrect

The marginal product eventually increases as more units of a variable factor are added to a fixed factor correct incorrect

* not completed

. The law of diminishing returns assumes:

There are no fixed factors of production correct incorrect

There are no variable factors of production correct incorrect

Utility is maximized when marginal product falls correct incorrect

Some factors of production are fixed correct incorrect

* not completed

. When internal economies of scale occur:

Total costs fall correct incorrect

Marginal costs must increase correct incorrect

Average costs fall correct incorrect

Revenue falls correct incorrect

* not completed

. The first level of output at which the long run average costs are first at their lowest level is called:

The Minimum Efficient Scale correct incorrect

The Minimum External Scale correct incorrect

The Maximum External Scale correct incorrect

The Maximum Effective Scale correct incorrect

* not completed

. The average variable cost curve:

Is derived from the average fixed costs correct incorrect

Converges with the average cost as output increases correct incorrect

Equals the total costs divided by the output correct incorrect

Equals revenue minus profits correct incorrect

* not completed

. If marginal cost is positive and falling:

Total cost is falling correct incorrect

Total cost is increasing at a falling rate correct incorrect

Total cost is falling at a decreasing rate correct incorrect

Total cost is increasing at an increasing rate correct incorrect

* not completed

. Total cost increases from £500 to £600 when output increases from 20 to 30 units. Fixed costs are £200. Which of the following is true?

Marginal cost is £20 correct incorrect

Average cost falls correct incorrect

Variable cost rises by £100 correct incorrect

Average fixed cost is £100 correct incorrect

* not completed

. Total cost increases from £500 to £600 when output increases from 20 to 30 units. Fixed costs are £200. Which of the following is true?

Marginal cost is equal to fixed cost correct incorrect

Average cost falls correct incorrect

Variable cost rises by £200 correct incorrect

Fixed costs rise correct incorrect

* not completed

. If marginal product is below average product:

The total product must fall correct incorrect

The average product will fall correct incorrect

Average variable costs will fall correct incorrect

Total revenue will fall correct incorrect