WorksheetsCost quiz
Total questions: 15
Worksheet time: 21mins
Fixed costs are also known as
Supplementary costs
Overhead costs
Indirect costs
All of the above
When production level is zero, TC will be:
Zero
Equal to fixed cost
Equal to variable cost
Equal to marginal cost
Per unit of good is called?
Fixed cost
Average cost
Variable cost
Unitary cost
TC increases at an increasing rate when MC is:
Constant
decreasing
Increasing
Negative
The average cost is 20$ and it is minimum when 4 units are produced. The MC of producing 4 units is:
20$
24$
5$
0$
Expenditure incurred by the producer on the purchase of inputs from the market is
Implicit Cost
Explicit Cost
What is the shape of the AC curve?
C-shaped
U-shaped
like a tick mark
Horizontal line
Even when the firm stops producing, they have to incur the loss of fixed costs
True
False
Marginal cost can never be constant
True
False
AVC starts from the point of origin and rises upwards towards the right
True
False
The AFC curve eventually touches zero
True
False
This cost incurs when production actually starts
Variable costs
Fixed costs
Average costs
Marginal cost
This cost does not change with the increase or decrease of output
Variable cost
Fixed cost
Average cost
Marginal cost
Find AFC, AC, MC and AVC
Choose answer only if you finished
Choose answer only if you did not finish
In a short run period, which of these factors of production are constant
Land
Labour
Capital
Entrepreneurship
