Review of Cost And Revenue Curves - SS2 Economics Past Questions & Answers - page 1

1

Which type of cost curve shows the total cost of producing a given quantity of goods?

A

Total cost curve

B

Average cost curve

C

Marginal cost curve

D

Total revenue curve

CORRECT OPTION: a
2

Which type of cost curve shows the average cost per unit of output?

A

Total cost curve

B

Average cost curve

C

Marginal cost curve

D

Total revenue curve

CORRECT OPTION: b
3

Which type of revenue curve shows the additional revenue earned from selling one more unit of output?

A

Total revenue curve

B

Average revenue curve

C

Marginal revenue curve

D

Total cost curve

CORRECT OPTION: c
4

Which revenue curve is typically a horizontal line at the market price?

A

Total revenue curve

B

Average revenue curve

C

Marginal revenue curve

D

Total cost curve

CORRECT OPTION: b
5

Which cost curve reflects the law of diminishing returns?

 

A

Total cost curve

B

Average cost curve

C

Marginal cost curve

D

Total revenue curve

CORRECT OPTION: c
6

What information do cost and revenue curves provide to businesses?

Cost and revenue curves provide businesses with important information about the relationship between costs, revenues, and output levels, which can help them make informed decisions about pricing, production levels, and overall profitability.

7

How do average and marginal cost curves differ?

The average cost curve shows the average cost per unit of output, while the marginal cost curve shows the additional cost of producing one more unit of output.

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