27. A firm\'s profit maximizing level of output is where: (a) total revenue exce

Question

27. A firm's profit maximizing level of output is where: (a) total revenue exceeds total variable cost (b) marginal revenue is less than marginal cost (c) total revenue equals total cost (d) marginal revenue equals marginal cost (e) normal profit is zero 8, Total cost minus total fixed cost equals: (a) total variable cost (b) average variable cost (c) marginal cost (d) average fixed cost (e) average total cost 29, If a firm is currently producing zero output, total cost equals: (a) zero (b) marginal costs (c) total variable cost (d) total fixed cost (e) average variable costs 30· The law of diminishing returns indicates that at some output: (a) total output must fall in the long run (b) marginal physical product must fall in the long run (c) total output must fall in the short run (d) marginal physical product must fall in the short run

Explanation / Answer

(27) D . MR =MC is the one of basic condition for every market for profit maximization

(28) A . Total cost consist total variable cost and total fixed cost .

(29)D . Total fixed cost is not concern about the output . It is present positively even in no output. Fixed cost consist cost of fixers and furniture .

(30)C .The law of diminishing return is concerned with short period .

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