Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
    1. Short-run - numerical
    2. Short-run - short-answer
    3. Long-run - short answer
    4. Cost theory - numerical
    5. Cost theory - short-answer
    6. Costs and cost curves - self-test questions
    7. Revenues - numerical
    8. Profit maximisation - short answer
    9. Revenue and profit - self-test questions
    10. Perfect competition - numerical
    11. Perfect competition - short answer
    12. Perfect competition - self-test questions
    13. Monopoly and oligopoly - short answer
    14. Monopoly - short answer
    15. The model of monopoly - self-test questions
    16. Economic efficiency - short answer
    17. Oligopoly - short answer
    18. Price discrimination - short answer
    19. Theory of firm - essay
    20. The big giveaway
    21. Fixing it transparently
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Revenue and profit - self-test questions

1

Revenue definitions Match the following definitions to the appropriate type of revenue. a) Price multiplied by output Choose... AR TR MR b) Total revenue divided by output Choose... AR TR MR c) The increase in total revenue from selling one more unit Choose... AR TR MR Yes, that's correct. Well done.No, that's not right. Have another go.Your answer has been saved.

2

Revenue calculation A firm is selling 100 units at a price of $25. However, to sell 110 units they need to cut the price to $24. What is the level of marginal revenue at this higher level of sales? a) $140 b) $2640 c) $14 d) -$1 Please select an answerNo, that's not right. This is the extra revenue from selling the 10 extra units. The marginal cost is the cost of just one of these.No, that's not right. This is the total revenue of selling 110 units.Yes, that's correct. The marginal revenue is the difference between total revenue at 100 units ($2500) and total revenue at 110 ($2640) divided by ten to get the extra cost per unit.No, that's not right. This is the change in price, not the marginal revenue.

3

Revenue calculation A firm is selling 100 units at a price of $25. However, to sell 110 units they need to cut the price to $24. What is the average revenue at 110 units? a) $25 b) $2640 c) $14 d) $24 Please select an answerNo, that's not right. This is the average revenue at 100 units.No, that's not right. This is the total revenue of selling 110 units.No, that's not right. This is the marginal revenue, not the average revenue.Yes, that's correct. This is the average revenue of 110 units.