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Gillespie: Foundations of Economics 2e

Unit 10


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Question 1

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

Question 2

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

Question 3

If firms earn normal profits:

Question 4

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

Question 5

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

Question 6

The profit per sale is a measure of:

Question 7

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

Question 8

Total revenue equals:

Question 9

If marginal revenue equals marginal cost:

Question 10

Price equals: