Theory of Production and Cost-Test 7

Marginal cost is found with the help of changes in

The addition or increment to the total cost involved in expanding or contracting output by one unit is called

Marginal cost is

Marginal cost curve always cuts the average cost curve

Rising portion of marginal cost curve is due to

Marginal cost at any production level is the extra cost of producing

As the production increases beyond a point, the vertical distance between the average total cost curve and the average variable cost curve generally

The MC curve cuts the AVC and ATC curves

Given a U-shaped average cost curve, the relationship between average cost and marginal cost is such that marginal cost must always be

As long as the average cost curve is rising

When average cost is falling, marginal cost

When average cost is constant, marginal cost

When average cost is rising, marginal cost

Both marginal and average costs are equal to each other when,

The point on which the long run average cost is minimum in a firm, short run average cost curve will also be the minimum cost point on the firm’s long run average cost curve. This is

The long-run average cost is based on the fact that

The firm producing at the minimum point of the LAC curve is said to be

In the long run

A firm’s fixed inputs include –

The number of units of capital required in order to produce one unit of output is termed as :

The normal long-run average cost curve is influenced by the

The lowest point of the TC curve is

If the LAC curve falls as output expands, this fall is due to

Long run average cost curves are broadly

The fall in a firm’s short run average total cost with an increase in production would be due to which of the following :

Which one of the following would be a variable cost to a firm ?

Which of the following statements is correct :

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

With the expansion of output, the short run average cost curve, beyond a point, starts rising because

Generally the profits are maximized  in the short run at the point at which