Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?

Related MCQs

• Suppose that a firm produces 200,000 units a year and sells them all for Rs.10 each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
• When both average and total product are greater than zero, and marginal product equals average product, then total product:
• If a firm's revenues just cover all its opportunity costs, then:
• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• Which would be an implicit cost for a firm? The cost:
• If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:
• When marginal product reaches its maximum, what can be said of total product?
• Which cost is to be incurred by a firm even if output is zero:
• The reason the marginal cost curve eventually increases as output increases for the typical firm is because:
• The marginal product of labor curve shows the change in total product resulting from: