Lesson 4.1.4.6
4.1.4.6 Marginal, average and total revenue Quiz: AQA Economics, Unit 1
20 questions
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Lesson 4.1.4.6, Marginal, average and total revenue: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.
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The 20 questions
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How is total revenue calculated by a firm?
- Output per worker
- Cost minus revenue
- Price plus quantity
- Price times quantity
-
How is a firm's average revenue calculated from total revenue?
- Divided by profit
- Plus marginal revenue
- Multiplied by price
- Divided by quantity
-
What term describes the change in total revenue from selling one additional unit?
- Total revenue
- Marginal revenue
- Average revenue
- Supernormal profit
-
A firm sells 4 units at £10 each and 5 units at £9 each. What is the marginal revenue of the fifth unit?
- £9.
- £45.
- £1.
- £5.
-
A firm sells 4 units at £10 each and 5 units at £9 each. What is average revenue at 5 units?
- £45.
- £5.
- £9.50.
- £9.
-
Which curve is identical to a firm's demand curve?
- Total revenue
- Marginal revenue
- Average revenue
- Marginal cost
-
In perfect competition, what is equal to average revenue and price?
- Marginal revenue
- Total cost
- Fixed cost
- Total revenue
-
For a firm with a downward-sloping demand curve, where is marginal revenue relative to average revenue?
- Above average revenue
- Equal to average revenue
- Below average revenue
- Constant at zero
-
If selling 4 units yields £40 total revenue and 5 units yields £45, what is marginal revenue?
- £10
- £45
- £9
- £5
-
Using a demand schedule where P = 10, 9, 8, 7, 6 for Q = 1 to 5, what is marginal revenue between 3 and 4 units?
- £7.
- £4.
- £8.
- £2.
-
A demand schedule gives prices of £10, £9, £8, £7 and £6 for 1 to 5 units sold. At what output is total revenue highest?
- 3 units.
- 1 unit.
- 2 units.
- 5 units.
-
What happens to total revenue when marginal revenue is zero?
- It equals zero
- It is minimised
- It is falling
- It is maximised
-
What happens to total revenue when marginal revenue is negative?
- It is falling
- It stays constant
- It is maximised
- It is rising
-
If average revenue falls to zero at 40 units, at what output is marginal revenue zero?
- 20 units
- 0 units
- 40 units
- 80 units
-
To sell an extra unit, what must a firm facing downward-sloping demand do to price?
- Maintain it
- Increase it
- Reduce it
- Double it
-
At what level of marginal revenue is total revenue maximised?
- Positive
- Equal to price
- Negative
- Zero
-
What key factor is ignored when a firm focuses solely on total revenue maximisation?
- Sales volume
- Market demand
- Total costs
- Product price
-
When average revenue is falling, where must marginal revenue lie?
- Above average revenue
- Parallel to total revenue
- Below average revenue
- Equal to average revenue
-
A firm sells 100 units at £6, then 120 units at £5. What is the marginal revenue?
- £20
- £1
- £0
- £5
-
Total revenue is £120 for 12 units and £132 for 13 units. What is the marginal revenue?
- £12
- £1
- £132
- £10
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