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

  1. How is total revenue calculated by a firm?

    • Output per worker
    • Cost minus revenue
    • Price plus quantity
    • Price times quantity
  2. How is a firm's average revenue calculated from total revenue?

    • Divided by profit
    • Plus marginal revenue
    • Multiplied by price
    • Divided by quantity
  3. What term describes the change in total revenue from selling one additional unit?

    • Total revenue
    • Marginal revenue
    • Average revenue
    • Supernormal profit
  4. 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.
  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.
  6. Which curve is identical to a firm's demand curve?

    • Total revenue
    • Marginal revenue
    • Average revenue
    • Marginal cost
  7. In perfect competition, what is equal to average revenue and price?

    • Marginal revenue
    • Total cost
    • Fixed cost
    • Total revenue
  8. 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
  9. If selling 4 units yields £40 total revenue and 5 units yields £45, what is marginal revenue?

    • £10
    • £45
    • £9
    • £5
  10. 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.
  11. 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.
  12. What happens to total revenue when marginal revenue is zero?

    • It equals zero
    • It is minimised
    • It is falling
    • It is maximised
  13. What happens to total revenue when marginal revenue is negative?

    • It is falling
    • It stays constant
    • It is maximised
    • It is rising
  14. If average revenue falls to zero at 40 units, at what output is marginal revenue zero?

    • 20 units
    • 0 units
    • 40 units
    • 80 units
  15. To sell an extra unit, what must a firm facing downward-sloping demand do to price?

    • Maintain it
    • Increase it
    • Reduce it
    • Double it
  16. At what level of marginal revenue is total revenue maximised?

    • Positive
    • Equal to price
    • Negative
    • Zero
  17. What key factor is ignored when a firm focuses solely on total revenue maximisation?

    • Sales volume
    • Market demand
    • Total costs
    • Product price
  18. When average revenue is falling, where must marginal revenue lie?

    • Above average revenue
    • Parallel to total revenue
    • Below average revenue
    • Equal to average revenue
  19. A firm sells 100 units at £6, then 120 units at £5. What is the marginal revenue?

    • £20
    • £1
    • £0
    • £5
  20. 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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