* not completed

. If the marginal revenue is less than the marginal cost then to profit maximize a firm should:

Reduce output correct incorrect

Increase output correct incorrect

Leave output where it is correct incorrect

Increase costs correct incorrect

* not completed

. If the price is less than the average costs but higher than the average variable costs:

The firm is making a loss and will shutdown in the short term correct incorrect

The firm is making a profit correct incorrect

The firm is making a loss but will continue to produce in the short term correct incorrect

The firm is making a loss and is making a negative contribution to fixed costs correct incorrect

* not completed

. If firms earn normal profits:

They will aim to leave the industry correct incorrect

Other firms will join the industry correct incorrect

The total revenue equals total costs correct incorrect

No profit is made in accounting terms correct incorrect

* not completed

. In the long term a firm will produce provided the revenue covers:

Fixed costs correct incorrect

Variable costs correct incorrect

Total costs correct incorrect

Sales correct incorrect

* not completed

. In the short term a firm will produce provided the revenue:

Covers fixed costs correct incorrect

Covers variable costs correct incorrect

Covers total costs correct incorrect

Covers sales correct incorrect

* not completed

. The profit per sale is a measure of:

Cash flow correct incorrect

Profitability correct incorrect

Feasibility correct incorrect

Liquidity correct incorrect

* not completed

. The total costs are £200 and 10 units are produced. The marginal cost of an 11^th unit is £130. Which of the following is true?

The average cost increases from £20 to £30 correct incorrect

The total costs for 11 units are £70 correct incorrect

The average cost for 11 units is £130 correct incorrect

The average cost for 11 units is £130 correct incorrect

* not completed

. Total revenue equals:

Price plus the quantity correct incorrect

Price multiplied by the quantity sold correct incorrect

Price divided by the quantity sold correct incorrect

Price minus the quantity sold correct incorrect

* not completed

. If marginal revenue equals marginal cost:

No profit is being made correct incorrect

Total revenue equals total cost correct incorrect

Profits are maximized correct incorrect

Producing another unit would increase profits correct incorrect

* not completed

. Price equals:

Total revenue - quantity correct incorrect

Total revenue / quantity sold correct incorrect

Total quantity sold * quantity sold correct incorrect

Total revenue / total cost correct incorrect