Cost Concepts & Breakeven Quiz

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About this activity

Assess key cost concepts and breakeven.

Created by

sarah ayyad

United Arab Emirates

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Cost Concepts & Breakeven QuizOnline version Assess key cost concepts and breakeven. by sarah ayyad 1 If price is above marginal cost, producing the next unit increases profit. Yes No 2 In perfect competition, price equals marginal revenue. Yes No 3 In the short run, some costs are fixed and some are variable. Yes No 4 At breakeven, profit equals zero. Yes No 5 Variable costs change with the level of production. Yes No 6 The marginal cost curve typically intersects the average total cost curve at its minimum point. Yes No 7 Marginal revenue is the change in total revenue from selling one additional unit. Yes No 8 Marginal cost is the change in total cost from producing one additional unit. Yes No 9 Variable costs are constant regardless of production. Yes No 10 The breakeven point occurs when total revenue is greater than total cost. Yes No 11 The shutdown point is when price exceeds average variable cost. Yes No 12 Fixed costs increase with output in the short run. Yes No 13 Breakeven point is where total revenue equals total cost. Yes No 14 Average variable cost equals total variable cost divided by quantity. Yes No 15 Marginal cost equals average total cost for all levels of output. Yes No 16 Fixed costs do not vary with output in the short run. Yes No

Cost Concepts & Breakeven QuizOnline version

Assess key cost concepts and breakeven.

by sarah ayyad

If price is above marginal cost, producing the next unit increases profit.

Yes

In perfect competition, price equals marginal revenue.

Yes

In the short run, some costs are fixed and some are variable.

Yes

At breakeven, profit equals zero.

Yes

Variable costs change with the level of production.

Yes

The marginal cost curve typically intersects the average total cost curve at its minimum point.

Yes

Marginal revenue is the change in total revenue from selling one additional unit.

Yes

Marginal cost is the change in total cost from producing one additional unit.

Yes

Variable costs are constant regardless of production.

Yes

The breakeven point occurs when total revenue is greater than total cost.

Yes

The shutdown point is when price exceeds average variable cost.

Yes

Fixed costs increase with output in the short run.

Yes

Breakeven point is where total revenue equals total cost.

Yes

Average variable cost equals total variable cost divided by quantity.

Yes

Marginal cost equals average total cost for all levels of output.

Yes

Fixed costs do not vary with output in the short run.

Yes

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Cost Concepts & Breakeven Quiz

Yes or No

About this activity

Created by

Download the paper version to play

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Cost Concepts & Breakeven QuizOnline version

by sarah ayyad

If price is above marginal cost, producing the next unit increases profit.

In perfect competition, price equals marginal revenue.

In the short run, some costs are fixed and some are variable.

At breakeven, profit equals zero.

Variable costs change with the level of production.

The marginal cost curve typically intersects the average total cost curve at its minimum point.

Marginal revenue is the change in total revenue from selling one additional unit.

Marginal cost is the change in total cost from producing one additional unit.

Variable costs are constant regardless of production.

The breakeven point occurs when total revenue is greater than total cost.

The shutdown point is when price exceeds average variable cost.

Fixed costs increase with output in the short run.

Breakeven point is where total revenue equals total cost.

Average variable cost equals total variable cost divided by quantity.

Marginal cost equals average total cost for all levels of output.

Fixed costs do not vary with output in the short run.

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