Theory of production, costs & revenue – Test 1

Which of the following is an example of an “implicit cost”?

Accounting costs are also called-

Total cost in the short run is classified into fixed costs and variable costs. Which one of the following is a variable cost?

_________ are costs that are readily identified and are traceable to a particular product, operation or plant.

___________ are not readily identified nor visibly traceable to specific goods, services, operations.

………… are not a function of output; they do not vary with output up to a certain level of activity.

___________ are costs that are a function of output in the production period and changes in proportion to output.

Identify the fixed cost from the following:

Which of the following statements is false?

Which cost increases continuously with the increase in production?

Which of the following statements is true?

Which of the following cost curves is never ‘U’ shaped?

In the production of wheat, all of the following are variable factors that are used by the farmer except

Which one of the following is also known as planning curve?

With which of the following is the concept if marginal cost closely related?

Which is the other name that is given to the average revenue curve?

Which of the following is true of the relationship between the marginal cost function and the average cost functions?

Suppose output increases in the short run. Total cost will-

Which of the following statements concerning the long-run average cost curve is false?

The negatively-sloped part of the long-run average total cos curve is due to which of the following?

Laws of production does not include-

The average product of labour is maximized when marginal product of labour-

In the long run ……….

The change in the total product resulting from a change in a variable input is-

In the long run, if a very small factory were to expand its scale of operations, i is likely that it would initially experience ……….