Economics MCQs

Page No. 283

In Price discrimination abnormal profits are made if ?


a Average revenue is greater than average variable cost

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b Average revenue is greater than average cost

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cAverage revenue is greater than marginal revenue

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dAverage revenue is greater than average fixed cost

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A benefit to consumers of price discrimination is that ?


aSome products are produced that would not otherwise be produced

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bProducer surplus increases

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cConsumer surplus decreases

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dFirm’s profits increase

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If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?


aThe higher price in market A

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b The higher price in market B

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cThe same Price in both markets

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d Cannot tell which price will be higher

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Which best describes price discrimination ?


aCharging different prices for different products

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bCharging the same prices for different products

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cCharging the same prices for same products

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dCharging different prices for the same products

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Price equals ?


aTotal revenue – quantity

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bTotal revenue / quantity sold

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cTotal quantity sold quantity sold

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d Total revenue / total cost

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Total revenue equals ?


a Price plus quantity

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b Price multiplier by quantity sold

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cPrice divided by the quantity sold

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d Price minus quantity sold

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The profit per sale is a measure of ?


a Profit

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bProfitability

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cFeasibility

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dRealism

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View Answer Realism

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


aFixed costs

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bVariable costs

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cTotal costs

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dRevenue

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View Answer Total costs

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

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b The firm is making a profile

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cThe firm is making a loss but will continue to produce in the short term

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

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If marginal product is below average product ?


aThe total product will fall

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b The average product will fall

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cAverage variable cost will fall

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d Total revenue will fall

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