Cost (W.B)

The earning of a factor of production from an alternative use is known as the _______________ of that factor of production.

• money cost
• real cost
• opportunity cost
• average cost

The TFC curve will be ________________.

• horizontal
• upward rising
• convex
• concave

When average cost decreases, marginal cost:

• decreases
• increases
• will be less than AC
• will be greater than AC

AFC curve will be :

• downward sloping
• horizontal
• U-shaped
• upward rising

In the short run AC will be _________________.

• U-shaped
• upward rising
• downward sloping
• concave

At the lowest point of the AC curve _________________.

• AC = MC
• MC is lowest
• AC > MC
• AC < MC

The difference between fixed cost and variable cost is applicable :

• only in the short run
• only in the long run
• both in the short run & in the long run
• in no period of time

When MC < AC, AC will be ___________________.

• downward sloping
• upward rising
• fixed
• none of these

When average cost increases marginal cost ____________.

• increases
• decreases
• is higher than average cost
• is lower than average cost

In the short run the MC curve is :

• downward sloping
• upward rising
• V-shaped
• U-shaped