MCQ-6: Which is the right equation for calculating the break-even output:

a. Breakeven output = Fixed Costs/(Unit Selling Price - Variable Costs)

b. Breakeven output = Total Costs/(Unit Selling Price - Variable Costs)

c. Breakeven output = Fixed Costs/Unit profit

MCQ-7: Production of Chicken by a poultry firm should be discontinued if

a. Total revenue from Chicken is less than the sum of fixed and variable costs.

b. Total revenue from Chicken is less than total variable cost for producing Chicken.

c. Unit Fixed cost is higher than Unit variable cost.

d. Chicken's market price is equal of its unit cost of production.

MCQ-8: That price-elasticity of demand for Australian apple is (-) 3, signifies

a. Unitary elasticity of demand

b. Highly inelastic demand for apple.

c. Highly elastic demand for apple.

d. Nil elasticity of demand for apple.

MCQ-9: That cross price-elasticity of product X and Product Y is 1.25 implies that

a. These two products are inferior goods.

b. Product X and Y are complementary.

c. Product X is a substitute for product Y.

d. Product X and Y are luxury goods.

MCQ-10: Income elasticity of demand for rice is measured as

a. Change in Mr. Ahmed's demand for rice following 1 % rise in his income.

b. Change in Mr. Ahmed's demand for rice following 1 % rise in price of plain rice.

c. Percentage change in Mr. Ahmed's demand for rice following 1 % rise in Mr. Khaleq's income.

d. Change in demand for plain rice following rise in inflation.