Average fixed cost curve is always:

Important Questions on Theory of Production and Cost

MEDIUM

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Average Fixed Cost>Q 207

A firms AFC is $\mathrm{Rs}. 200$ at $10$ units of output what will be it at $20$ units of output?

MEDIUM

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Market in Point Out Marginal Cost>Q 230

Output (units)	TFC (in Rs.)	TVC (in Rs.)	MC (in Rs.)
$0$	$500$	-	-
$1$	$500$	$400$	$400$
$5$	$500$	$1600$	-

What will be marginal cost, when output is $5$ units?

MEDIUM

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Relationship Between AC & MC>Q 238

What happens to marginal cost when average cost increases?

MEDIUM

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Relationship Between AC & MC>Q 241

Which of the following is true of the relationship between the marginal cost function and the average cost function?

MEDIUM

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Long Run Average Cost Curve>Q 246

The negatively-sloped (i.e. falling) part of the long-run average total cost curve is due to which of the following?

EASY

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Economics and Diseconomies of Scale>Q 252

Economies of scale exist because as a firm increases its size in the long run:

EASY

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Meaning of Production>Q 1

What is Production in Economics ?

EASY

CA Foundation

IMPORTANT

Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Meaning of Production>Q 2

Which of the following is considered as production in economics?