6 Questions
Which of the following best defines fixed costs (FC)?
The costs of production that do not change when the rate of output is altered.
What is the formula for total cost (TC)?
TC = FC + VC
What condition must be met to maximize profits in a perfect competitive market?
Price must equal marginal cost (P = MgC)
According to the law of diminishing marginal utility, each successive unit of a good consumed produces ______ additional utility.
less
Which of the following is a determinant of price elasticity of demand?
Availability of substitutes
What is the formula for total revenue?
TR = PxQ
Test your understanding of consumer demand and utility in microeconomics with this quiz. Explore concepts such as total utility and marginal utility and assess your knowledge in this fundamental area of economics.
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