Types of Cost, Revenue and Profit, Short-Run and Long-Run Production Quiz by Shubhrata Shrestha | Jun 28, 2025 | 0 comments Types of Cost, Revenue and Profit, Short-Run and Long-Run Production Quiz 1. What does the Marginal Product measure? A) Total output produced by all workers B) Output per unit of input C) Additional output from one more unit of input D) Revenue from selling one unit None 2. When is Average Total Cost (ATC) minimized? A) When Total Cost equals Marginal Cost B) When Marginal Cost is at its maximum C) When Fixed Cost equals Variable Cost D) When Marginal Cost equals ATC None 3. In the long run, all factors of production are: A) Fixed B) Variable C) Costless D) Ignored None 4. If the Average Revenue equals Price, it implies: A) Marginal Revenue is always zero B) Cost equals revenue C) The AR curve is the same as the demand curve D) Profit is maximized None 5. An example of an external diseconomy of scale is: A) Poor worker motivation B) X-inefficiency C) Coordination breakdown D) Increased traffic congestion None 6. Average Variable Cost (AVC) is calculated by: A) Total Cost ÷ Output B) Fixed Cost ÷ Output C) Variable Cost ÷ Output D) Revenue ÷ Output None 7. The Minimum Efficient Scale is: A) The lowest level of output where LRAC is minimized B) The point where TR = TC C) The highest average cost a firm can achieve D) Always zero in the short run None 8. What is a characteristic of increasing returns to scale? A) Output increases more than proportionally to input B) Costs rise faster than production C) Marginal cost always increases D) Only capital is variable None 9. Which of the following is not an internal economy of scale? A) Technical economy B) Government subsidy C) Managerial economy D) Purchasing economy None 10. Subnormal profit occurs when: A) Price equals ATC B) Total Revenue is less than Total Cost C) Marginal cost equals average cost D) A firm maximizes output None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
