Q.1 Talking on the Macro Level firms will not stop there production until there marginal cost is equal to marginal revenue and they don't reach the break even. If marginal cost is greater than the marginal revenue than it meas production unit is in loss and will stop the production. Breakeven occurs when the marginal cost equals marginal revenue.
Q.2 True. The loss is not there when the total revenue is equal to the slope of total cost and the production unit will achieve the break even point if both are at the same level.
Q.3 False. Break even doesn't occur when the marginal profit is zero but it occurs when the marginal profit and marginal expenses both are same or equal, then the break even is achieved.
Q.4 Break even doesn't occur where marginal profit is maximised. Reason of increase in marginal profit is when there is increase in sales or increase is in the product price or when there is a huge gap between the cost and profit.
Q.5 True. Break even is occured when marginal cost and revenue are equal.
Q.6 This statement is false. There is only one condition when marginal revenue is zero which is when the level of output is maximum and at which place total revenue also reaches its maximum value.
Q.7 Talking about this statement at micro level than it is true. But if we are making looses in the short run that doesn't mean we will be making losses in long run as well.
Q.8 True. When the total revenue curve is positively sloped at the same time marginal revenue is also positively sloped.
Q.9 This statement is true.
Q.10 True.
Q.11 False
Get Answers For Free
Most questions answered within 1 hours.