Costs, Revenue, and Objectives Quiz

What are examples of costs of production?

• D. All of the above

• C. Raw materials purchases and component costs

• B. Utility bills, dividend payments, and taxes

• A. Employee salaries, rent, and advertising expenses

Which costs remain constant regardless of the level of production?

• C. Fixed Costs

• B. Total Costs

• A. Variable Costs

• D. Average Variable Costs

What is the formula for Total Cost (TC)?

• D. TC = FC / VC

• C. TC = FC + VC

• B. TC = FC x VC

• A. TC = FC - VC

What does Average Fixed Cost (AFC) represent?

• C. Total cost per unit of output

• B. Variable cost per unit of output

• D. Total revenue per unit sold

• A. Fixed cost per unit of output

What is the formula for Average Variable Cost (AVC)?

• D. AVC = TR / Q

• A. AVC = FC / Output level

• B. AVC = VC / Output level

• C. AVC = TC / Output level

What is the objective of firms focusing on responsible business practices and societal well-being?

• A. Survival

• B. Social Welfare

• C. Growth

• D. Profit Maximization

What is the positive difference between total revenue and total cost?

• A. Total Cost

• D. Variable Costs

• B. Average Revenue

• C. Profit

Which costs change with the level of output?

• A. Fixed Costs

• D. Average Fixed Costs

• B. Total Costs

• C. Variable Costs

What is the formula for Average Total Cost (ATC)?

• C. ATC = TC / Q

• D. ATC = TR / Q

• B. ATC = VC / Q

• A. ATC = FC / Q

What is the revenue per unit sold calculated as total revenue divided by quantity sold?

• A. Total Revenue

• B. Average Revenue

• C. Profit

• D. Variable Costs