Economics MCQs

Page No. 283

In Price discrimination abnormal profits are made if ?


a Average revenue is greater than average variable cost


b Average revenue is greater than average cost


cAverage revenue is greater than marginal revenue


dAverage revenue is greater than average fixed cost



A benefit to consumers of price discrimination is that ?


aSome products are produced that would not otherwise be produced


bProducer surplus increases


cConsumer surplus decreases


dFirm’s profits increase



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


b The higher price in market B


cThe same Price in both markets


d Cannot tell which price will be higher



Which best describes price discrimination ?


aCharging different prices for different products


bCharging the same prices for different products


cCharging the same prices for same products


dCharging different prices for the same products



Price equals ?


aTotal revenue – quantity


bTotal revenue / quantity sold


cTotal quantity sold quantity sold


d Total revenue / total cost



Total revenue equals ?


a Price plus quantity


b Price multiplier by quantity sold


cPrice divided by the quantity sold


d Price minus quantity sold



The profit per sale is a measure of ?


a Profit


bProfitability


cFeasibility


dRealism


View Answer Realism

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


aFixed costs


bVariable costs


cTotal costs


dRevenue


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


b The firm is making a profile


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


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



If marginal product is below average product ?


aThe total product will fall


b The average product will fall


cAverage variable cost will fall


d Total revenue will fall



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