ECONOMICS- THEORY OF COST

Wages paid to labourers is an example of:

• explicit cost

• implicit cost

• selling cost

• opportunity cost.

When production level is zero, fixed cost will be:

• zero

• negative

• positive

• equal to variable cost.

Fixed costs are also known as :

• supplimentary cost

• overhead cost

• indirect cost

• all of these

per unit cost of a good is called:

• fixed cost

• variable cost

• average cost

• marginal cost

Which statement of the following is true ?

• AC=TFC – TVC

• AC = AFC + TVC

• AC=TFC + AVC

• AC = AFC + AVC

The shape of average cost curve is :

• U-shaped

• Reactangular Hyperbola shaped

• Line parallel to x-axis

• None of these

Which of the following is correct ?

• TVC = TC – TFC

• TC = TVC-TFC

• TFC = TVC + TC

• TC = TVC x TFC

Average variable costs can be defined as:

• TVC x Q

• TVC + Q

• TVC-Q

• TVC ÷ Q

With increase in output, the difference between total cost and total variable cost:

• Decreases

• Increases

• Remains Constant

• None of the above

Which factors are used in short-run production process ?

• Fixed Factors

• Variable Factors

• Both (a) and (b)

• None of the above