CBSE  /  Class 11  /  Economics  /  Production and Costs

  • 1. 
    When average cost is decreasing what status marginal cost has as compared to average cost ?

  • 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

  • 5. 
    The average fixed cost at 5 units of output is Rs. 20. Average variable cost at 5 units of output is Rs. 40. Average cost of producing 5 units is:

  • 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

  • 7. 
    Average variable costs can be defined as:

  • 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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