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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
Explanation
When marginal cost rises, firms typically reduce output to minimize costs. Conversely, an increase in marginal revenue encourages firms to produce more, as additional units become more profitable.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 4.What are firms generally assumed to do with their costs and profits?
- 5.What term describes the added satisfaction gained from consuming an additional unit of a product?
- 6.What does the opportunity cost for a student represent?
- 7.What is the expected effect on your demand for goods if both your income and the prices of those goods double?
- 8.Which term describes the responsiveness of the quantity demanded to changes in consumer income?
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