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COST AND MARKET ANALYSIS

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

WHICH OF THE FOLLOWING COSTS IS CONSIDERED AS THE COST OF PRODUCTION FOR A PRODUCTION UNIT IN ECONOMICS THEORY ?

a)

ACCOUNTING COST

b)

REAL COST

c)

EXTERNAL COST

d)

ECONOMIC COST

2.

What makes the total cost curve run parallel with the total variable cost in the short run production unit?

a)

The total fixed cost remains same always

b)

The total cost curve depends on the total variable cost with the change in the level of output only.

c)

The total cost curve follows the law of increasing returns

d)

The total cost curve is inverted S shaped.

3.

When Akhil, Eshaan, and Saisha work together, why does the total variable cost first increase at a decreasing rate?

a)

The fixed factor gets employed

b)

The variable factor starts using the fixed factor efficiently

c)

The variable factor keeps on increasing as to raise the output

d)

Labour effectively works with the given set of technology

4.

Which of the following costs follow the law of variable proportions?

a)

TFC

b)

AFC

c)

MC

d)

ATC

5.

HOW IS A OLIGOPOLIST MARKET STRUCTURE DIFFERENT FROM A MONOPOLIST MARKET STRUCTURE ? STATE ATLEAST 4 POINTS TO POINT OUT THE DIFFERENCE .

4 lines
6.

What is the demand curve for an oligopolist market structure?

a)

Definite

b)

Perfectly Elastic

c)

Unitary

d)

Undefined

7.

What makes the market of a perfectly competitive market and a monopolistic market different?

a)

Freedom of entry and exit

b)

Larger number of sellers than buyers

c)

Larger number of homogenous products

d)

Differentiated products

8.

STATE THE 3 MAJOR PROPERTIES OF THE ATC ,AVC & AFC CURVE IN THE SHORT RUN PRODUCTION UNIT

4 lines
9.

WHICH OF THE FOLLOWING FACTORS RESULT IN THE NEGATIVE RETURNS OF THE PRODUCTION UNIT

a)

OVERCROWDING

b)

INEFFICIENCY OF THE VARIABLE FACTORS IN THE LONG RUN

c)

FULLER UTILISATION OF THE RESOURCES

d)

TECHNOLOGY BECOMES OBSOLETE

10.

STATE THE STAGES OF THE LAW OF VARIABLE PROPORTIONS WITH RESPECT TO MARGINAL PRODUCT AND TOTAL PRODUCT ONLY

4 lines