Theory of production, costs & revenue – Test 6

A firm’s average total cost is 300rs at 5 units of output and 320rs at 6 units of output. The marginal cost of producing the 6th unit is: …………

A firm producing 7 units of output has an average total cost of 150 and has to pay 350 to its fixed factors of production whether it produces or not How much of the average total cost is made up of variable costs?

A firm has a variable cost of 1,000 at 5 units of output. If fixed costs are 400, what will be the average total cost at 5 units of output?

A firm’s average fixed cost is 20 at 6 units of output. What will it be at 4 units of output?

Which of the following statement is true of the relationship among the average cost functions?

________represents total sales proceeds of the firm and is equal to per unit price multiplied by the quantity sold.

__________is the addition to total revenue when the quantity sold is increased by one unit.

__________is per unit price of the product.

The difference between average total cost and average variable cost: ……..

If AR curve runs parallel to X-axis, it means-

In the short run, when the output of a firm increases, its average fixed cost-

The marginal cost for a firm of producing the 9th unit of output is 20. Average cost at the same level of output is 15. Which of the following must be true?

Producer’s equilibrium refers to the level of output of a commodity that gives the _________ to the producer of the commodity.

Equilibrium is defined as a situation in which-

As per Total Revenue less Total Cost (TR-TC) approach of looking at the producer’s equilibrium, which of the following condition is necessary for production’s equilibrium?

As per Marginal Revenue and Marginal Cost (MR & MC) approach of looking at the producer’s equilibrium, which of the following condition is necessary for producer’s equilibrium?

A form should close down if profits are zero

In the long-run, some firms will exit the market if the price of the good offered for sale is less than

The cost of one thing in terms of the alternative given up is known as-

_________ take care of all the payments and charges made by the entrepreneur to the suppliers of various productive factors.

Economic costs include-

Opportunity cost is-

________ related to those costs only which involve cash payments by the entrepreneur of the firm.

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

………. take into account accounting costs but in addition, they also takes into account the amount of money the entrepreneur could have earned if had invested his money and sold his own services and other factors in the next best alternative uses.