Micro Economic Analysis (M.com) Sem 1 19.10.24

What is the typical shape of the long-run average cost curve?

• A) U-shaped

• B) L-shaped

• C) Increasing

• D) Horizontal

Which of the following is a type of fixed cost?

• A) Wages of production workers

• B) Rent for factory premises

• C) Raw material costs

• D) Utility bills

In the short run, which of the following costs can change as output changes?

• A) Total Fixed Cost

• B) Total Variable Cost

• C) Average Fixed Cost

• D) Total Cost

Total Revenue (TR) is calculated as:

• A) Total Cost minus Profit

• B) Price per unit multiplied by quantity sold

• C) Average Cost multiplied by total output

• D) Fixed Costs plus Variable Costs

Which type of revenue refers to the additional revenue from selling one more unit?

• A) Total Revenue

• B) Average Revenue

• C) Marginal Revenue

• D) Economic Revenue

The term "production" in economics refers to:

• A) The manufacturing of goods only

• B) The creation of goods and services

• C) The selling of products in the market

• D) The storage of raw materials

According to the Law of Variable Proportions, if one input is increased while others are held constant, output will:

• A) Always increase at the same rate

• B) Eventually increase at a decreasing rate

• C) Decrease after a certain point

• D) Remain constant

What do "returns to scale" refer to?

• A) The relationship between fixed and variable costs

• B) The increase in output when all inputs are increased proportionately

• C) The effect of adding one more variable input

• • D) The decrease in marginal costs with increased production

Which of the following is NOT a property of isoquants?

• A) Isoquants can intersect

• B) Isoquants are downward sloping

• C) Isoquants represent different levels of output

• D) Isoquants are convex to the origin

Isoquants are graphical representations that show:

• A) The relationship between total cost and output

• B) The fixed costs associated with production

• C) Different combinations of inputs that produce the same level of output

• D) The marginal cost of production