Costs (MicroEconomics, Class 11)

All money costs can be regarded as:

• (a) Social Costs

• (b) Opportunity Costs

• (c) Explicit Costs

• (d) Implicit Costs

Fixed Cost is also known as:

• (a) Special Cost

• (b) Direct Cost

• (c) Prime Cost

• (d) Overhead Cost

In a short period, when production increases the AFC:

• (a) Increases

• (b) Decreases

• (c) Remains Constant

• (d) Becomes zero

Average costs curve contains in it:

• (a) Normal Profit

• (b) No normal profit

• (c) Loss

• (d) All of the above

All of the following curves are ‘U’ shaped except:

• (a) AFC Curve

• (b) AVC Curve

• (c) MC Curve

• (d) ATC Curve

6. The MC curve intersects the AVC curve when AVC is:

• (a) Minimum

• (b) Maximum

• (c) Zero

• (d) Rising

When the output of a firm is increasing its total fixed cost:

• (a) Increases

• (b) Decreases

• (c) Remains Constant

• (d) All of the above

Variable costs include costs of:

• (a) Purchasing the building for the factory

• (b) Purchasing heavy machine

• (c) Paying the labourers

• (d) Raw material cost

Marginal Cost refers to addition to the total cost when one more unit of output is _________ .

• (a) Wasted

• (b) Produced

• (c) Employed

• (d) Sold

MC can be directly derived from:

• (a) TFC

• (b) TVC

• (c) AC

• (d) AFC