Q.1.16 The vertical distance between the average total cost curve and the average variable cost curve: (a) increases as output increases. (b) decreases as output increases. (c) is equal to the total variable cost per unit of labour. (d) is equal to the total variable cost.
Q.1.16 The vertical distance between the average total cost curve and the average
variable cost curve:
(a) increases as output increases.
(b) decreases as output increases.
(c) is equal to the total variable cost per unit of labour.
(d) is equal to the total variable cost.
Q.1.17 Marginal cost is defined by:
(a) total cost increases when one more unit is produced.
(b) fixed cost increases when one more unit is produced.
(c) Total revenue increases when one more unit is produced.
(d) average cost increases when one more unit is produced.
Q.1.18 Which of the following statements about a
(a) The monopolist has a flat demand curve because of high barriers to entry.
(b) For a monopolistic firm, profit will be maximised where price = marginal
revenue.
(c) In the long run, a monopolist can earn only normal profits.
(d) Price, in the long run, is not usually equal to the minimum average total
cost.
Q.1.19 Which of the following will NOT shift the market supply of labour curve?
(a) A change in the wages of the labourers.
(b) A change in migration.
(c) A change in the size of the population due to a change in birth or death
rates.
(d) Trade union action.
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