Category: Economics

A firm’s shutdown point is the output and price at which the firm just covers its ……… ?

Select ONE answer:

1. marginal cost.
2. total variable cost.
3. total cost.
4. total fixed cost.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

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For a perfectly competitive firm, the shutdown point is ……… ?

Select ONE answer:

1. the price at which economic profit is zero.
2. the price at which total opportunity cost is zero.
3. the level of output at which price equals minimum average variable cost.
4. the level of output at which price equals minimum average total cost.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

The figure below depicts the marginal revenue and costs of a perfectly competitive firm. The marginal cost of the last unit produced ……… ?

Select ONE answer:

1. $16 per unit.
2. $4 per unit.
3. $8 per unit.
4. None of the above answers is correct.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.

The figure below depicts the marginal revenue and costs of a perfectly competitive firm. When the firm produces 170 units ……… ?

Select ONE answer:

1. total revenue equals total cost.
2. total revenue is less than total cost.
3. marginal revenue equals marginal cost.
4. marginal cost is less than marginal revenue.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

The figure below depicts the marginal revenue and costs of a perfectly competitive firm. The firm’s profit is maximised when the firm produces ……… ?

Select ONE answer:

1. 170 units of output.
2. 130 units of output.
3. 90 units of output.
4. 210 units of output.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.