| 1 |
Long run cost curves can be termed as. |
- A. V-shaped
- B. U-shaped
- C. Oval-shaped
- D. Dish-shaped
|
| 2 |
As output increase, one of the following costs will also increase: |
- A. Marginal cost
- B. Average cost
- C. Variable cost
- D. Fixed cost
|
| 3 |
TVC |
- A. starts from origin
- B. not from origin
- C. is parallel to x-axis
- D. is parallel to y-axis
|
| 4 |
Which statement is true |
- A. ATC + AVC = AFC
- B. ATC + MC = AFC
- C. ATC + AFC = AVC
- D. AFC + AVC = ATC
|
| 5 |
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
|
| 6 |
The long run average cost curve is tangent to various |
- A. short run TCs
- B. short run ACs
- C. AVCs
- D. AFCs
|
| 7 |
The cost which a firm incurs for purchasing or hiring factors is called |
- A. implicit
- B. explicit
- C. real
- D. basic
|
| 8 |
Short run means is a period |
- A. less than one year
- B. in which at least one input is fixed
- C. in which no input can be changed
- D. in which firms can easily enter or exit
|
| 9 |
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
|
| 10 |
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
|
