• MC > AC
• MC = AC
• MC ≤ AC
• MC ≠ AC
• #### 2.  Which statement of the following is true ?

• AC=TFC – TVC
• AC = AFC + TVC
• AC=TFC + AVC
• AC = AFC + AVC
• #### 3.  What is an opportunity cost ?

• The alternative foregon
• The opportunity lost
• Transfer earnings
• All of these
• #### 4.  The shape of average cost curve is :

• U-shaped
• Reactangular Hyperbola shaped
• Line parallel to x-axis
• None of these

• Rs. 20
• Rs. 40
• Rs. 56
• Rs. 60
• #### 6.  Which of the following is correct ?

• TVC = TC – TFC
• TC = TVC-TFC
• TFC = TVC + TC
• TC = TVC x TFC

• TVC x Q
• TVC + Q
• TVC-Q
• TVC ÷ Q
• #### 8.  With increase in output, the difference between total cost and total variable cost:

• Decreases
• Increases
• Remains Constant
• None of the above
• #### 9.  Which factors are used in short-run production process ?

• Fixed Factors
• Variable Factors
• Both (a) and (b)
• None of the above
• #### 10.  Following figure shows:

• Total Fixed Cost
• Total Variable Cost
• Total Cost
• None of these
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