Cima C04 Exam Question No 33

Question No 33:

The break even output for a firm will be where:

A. Average cost is equal to average revenue
B. Average cost is at a minimum
C. Average revenue starts to fall
D. Average cost starts to rise

Answer: A

Cima C04 Exam Question No 32

Question No 32:

The profit-maximising output will always be where:

A. Average cost = marginal revenue.
B. Marginal cost = marginal revenue.
C. Average cost = average revenue.
D. Marginal cost = average revenue.

Answer: B

Cima C04 Exam Question No 31

Question No 31:

 The initial fall for a business in the short run average cost per unit of its output is the result of:

A. Diminishing returns to a fixed factor
B. Diseconomies of scale
C. The spreading of fixed cost over a larger output
D. A fall in total variable costs

Answer: C