subject

Cost Concepts

Economics ⇒ Consumer and Producer Behaviour

Cost Concepts starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Cost Concepts. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.
See sample questions for grade 12
A firm incurs the following costs at 10 units of output: Total Fixed Cost = ₹200, Total Variable Cost = ₹800. Calculate the Average Total Cost.
A firm’s total cost at 0 units of output is ₹1,000. What is its total fixed cost?
A firm’s total cost at 5 units is ₹1,500 and at 6 units is ₹1,620. What is the marginal cost of the 6th unit?
A firm’s total fixed cost is ₹600. If it produces 20 units, what is its average fixed cost?
Define the term 'opportunity cost' in the context of production.
Describe the behaviour of average fixed cost as output increases.
Describe the relationship between total cost, total fixed cost, and total variable cost.
Distinguish between short run and long run in the context of cost concepts.
Explain the concept of 'average cost' and how it is calculated.
Explain the concept of 'marginal cost' and its significance in production decisions.
Explain the difference between explicit cost and implicit cost with suitable examples.
Explain with an example how opportunity cost can influence a producer’s decision.
If the average variable cost is ₹40 and average fixed cost is ₹10 at a certain level of output, what is the average total cost?
If the total cost of producing 5 units is ₹1,000 and the total cost of producing 6 units is ₹1,150, what is the marginal cost of the 6th unit?
If the total fixed cost is ₹500 and the total variable cost is ₹1,500, what is the total cost?
If the total variable cost for 10 units is ₹2,000 and for 11 units is ₹2,300, what is the marginal cost of the 11th unit?
What is the relationship between marginal cost and average cost when average cost is falling?