| 1 |
Long rum is a period |
- A. three years or longer
- B. long enough to allow firms to change plant size and capacity
- C. in which a firm need not get loans
- D. which affects larger more than smaller firms
|
| 2 |
The cost which a firm incurs for purchasing or hiring factors is called |
- A. implicit
- B. explicit
- C. real
- D. basic
|
| 3 |
The sacrifice of an alternative use of resources to produce something is called its |
- A. real cost
- B. opportunity cost
- C. sacrifice cost
- D. alternative cost
|
| 4 |
Lowest point on the average cost curve in the long-run represents; |
- A. Optimum factors combination
- B. Maximum level of output
- C. Maximum level of total revenue
- D. None of the three
|
| 5 |
All inputs can be varied in |
- A. short run
- B. long run
- C. both periods
- D. non of the period
|
| 6 |
Pollution which is side effect of producing or consuming something and which is not taken into account by producers and sellers is called |
- A. externality
- B. wastage
- C. extra cost
- D. opportunity cost
|
| 7 |
Change in total cost on the production of one additional unit of output is calculated as . |
- A. Marginal cost
- B. Average cost
- C. Total cost
- D. Marginal product
|
| 8 |
As out put increases, AC curve |
- A. falls
- B. rises
- C. remains constant
- D. all of the above
|
| 9 |
The long run average cost curve is tangent to various |
- A. short run TCs
- B. short run ACs
- C. AVCs
- D. AFCs
|
| 10 |
Total fixed cost curve is . |
- A. Parallel to the vertical axis
- B. Parallel to the horizontal axis
- C. Sloping downward to the right
- D. Sloping upward to the right
|
