1. The Total fixed cost is P10,000, the selling price is P12 per unit, the average variable cost is P10. Which of the following represents the contribution margin?

a. P10.00

b. P12.00

c. P2.00

d. P22.00

2. The total economic cost is computed as

a. total implicit cost plus total explicit cost.

b. total implicit cost minus total explicit cost.

c. total implicit cost equals total explicit cost.

3. The product of the selling price and output refers to

a. total cost.

b. total profit.

c. total revenue.

4. Given that the decrease in demand exceeds the increase in supply,

a. the price equilibrium increases.

b. the price equilibrium decreases.

c. the price equilibrium remains constant.

5. The term implicit cost is synonymous to

a. explicit cost.

b. opportunity cost.

c. marginal cost.

6. The output level, which the seller or producer incurs no losses and no gains.

a. positive profit quantity.

b. negative profit quantity.

c. break-even quantity.

7. The level of output which profit is zero is called

a. break-even price.

b. break-even quantity.

c. surplus

8. If the supply curve shifted to the left, which of the following may have caused it?

a. increase in the cost of production.

b. increase in the number of sellers in the market.

c. good weather condition.

d. increase in the price of the commodity.

9. The Total fixed cost is P10,000, the selling price is P12 per unit, the average variable cost is P10. Which of the following represents the profit when output is 3,000 units?

a. P4000

b. -P4,000

c. P6,500

d. None of the above.

10. The Total fixed cost is P10,000, the selling price is P12 per unit, the average variable cost is P10. Which of the following represents the break-even quantity?

a. 3,000 units

b. 4,000 units

c. 5,000 units