Questions-1 when the quantity of unicycles is 40 the price, Ask an Expert

Economics

Questions-

1. When the quantity of unicycles is 40, the price is $16 and the marginal cost is $16. Which of the following statements is true?

A) The firm is making economic losses.

B) The firm is making a normal rate of profit.

C) The firm will become a monopoly.

D) The firm is making economic profits.

2. If the firm is experiencing diminishing marginal returns, when more of a resource is added:

A) marginal costs decline.

B) profits begin to drop.

C) output begins to drop.

D) marginal costs increase.

Additional Information-

These multiple choice questions belong to Economics. The first question is about marginal cost and the second question is about diminishing marginal returns.

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Microeconomics, Economics

Category:- Microeconomics
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