Cost of Production Test 01 Preparation Online

1. All inputs can be varied:

A. Non of the period

B. Long run

C. Short run

D. Both periods

2. Unit cost is another name for:

A. ATC

B. AFC

C. AVC

D. MC

3. The shape of rectangular hyperbola is made by:

A. AFC

B. MC

C. AVC

D. None of these

4. The short run:

A. Requires that all inputs are fixed

B. Is less than one year

C. Is just long enough to permit entry and exit

D. Requires that at least one input is fixed

5. In Monopoly at various output levels:

A. AR = MR

B. AR < MR

C. AR > MR

D. None of these

6. Which is NOT a cause of shift in cost curves of a firm:

A. Prices of inputs

B. Price of product

C. Excise tax

D. Increase in productivity

7. TC ?

A. Does not start from origin

B. Starts from origin

C. Is parallel to Y-axis

D. None of these

8. TVC ?

A. None of these

B. Starts from origin

C. Does not start from origin

D. Is parallel to Y-axis

9. All the following are U-shaped Except:

A. AC

B. MC

C. AVC

D. AFC

10. As output increases:

A. None of these

B. MC curve firstly falls then rises

C. MC firstly rises then falls

D. MC continuously rises

11. Which statement is true:

A. ATC + MC = AFC

B. ATC + AVC = AFC

C. ATC + AFC = AVC

D. AFC + AVC = ATC

12. The cost which a firm incurs for purchasing or hiring factors is called:

A. Nominal

B. Real

C. Implicit

D. Explicit

13. Excise tax is a part of:

A. Fixed cost

B. Is not a part of cost

C. Implicit cost

D. Variable cost

14. MC is given by:

A. Slope of TFC

B. Slope of AC

C. Slope of TC

D. None of these

15. TC is ?

A. None of these

B. Is horizontal

C. Falls after reaching a maximum

D. Rises continuously

Cost of Production Test 01 Preparation Online

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