O-LevelEconomicsMicroeconomic decision makers2281/11 · Oct/Nov 2011 · Q211 Mark

A firm is producing an output which enables it to make more than normal profit. What must be true at that output?

AAverage revenue must be greater than total revenue.

BAverage revenue must equal average cost.

CTotal revenue must be greater than total cost.

DVariable cost must equal price.

✓ Correct answer

C: Total revenue must be greater than total cost.

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2011 Paper 1 Variant 1, question 21.

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