Description : Economic cost is the sum of________ a). Variable and fixed costs b). Variable, fixed and opportunity costs c). Fixed and opportunity costs d). Variable, fixed and marginal costs
Last Answer : b). Variable, fixed and opportunity costs
Description : The cost of any activity measured in terms of the value of the next best alternative forgone a). Economic cost b). Variable cost c). Opportunity cost d). Marginal cost
Last Answer : c). Opportunity cost
Description : The additional cost from taking a cost of action is called a). Total cost b). Opportunity cost c). Variable cost d). Marginal cost
Last Answer : d). Marginal cost
Description : Marginal cost is defined as____ a). Cost that arises when the quantity produced changes by one unit b). Cost of producing one more unit of a good c). Increase in cost that accompanies a unit in crease in output d). All the above
Last Answer : d). All the above
Description : Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed ... cost analysis. A. A and B B. B and C C. A and D D. B and D
Last Answer : A. A and B
Description : Net returns a). Gross return – Fixed cost – Variable cost b). Gross return – Variable cost c). Gross return – Fixed cost d). Gross return – Total cost i) a & b, ii) a & c, iii) a & d, iv) b & d
Last Answer : iii) a & d
Description : The addition to total cost by producing an additional unit of out-put by a firm is called - (1) Variable cost (2) Average cost (3) Marginal cost (4) Opportunity cost
Last Answer : (3) Marginal cost Explanation: The addition to total cost by producing an additional unit of output by a firm is called Marginal cost. Average cost is the total cost of producing a given output divided by that output.
Description : The addition to total cost by producing an additional unit of output by a firm is called (1) Variable cost (2) Average cost (3) Marginal cost (4) Opportunity cost
Last Answer : Marginal cost
Description : Marginal cost refers to a). Additional cost from taking a course of action b). Increase in cost accompanies a unit increase in output c). Cost of producing one more unit of a good d). All
Last Answer : d). All
Description : Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost
Last Answer : (1) Variable Cost Explanation: In economics, marginal cost is the change in the total cost that arises when the quantity produced is Incremented by one unit. That is, it is the cost of producing one more ... in the short run. It is only the variable costs that vary with output in the short run.
Description : Which of the following cost curve is never `U' shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve
Last Answer : (3) Average fixed cost curve Explanation: Average fixed cost curve is never 'U' shaped. Since total fixed costs are unchanged as output rises, the average fixed cost curve falls continuously as output is increased.
Description : Why is the law of diminishing marginal returns true? a. specialization and division of labor b. spreading the average fixed cost c. limited capital d. all factors being variable in the long-run
Last Answer : c. limited capital
Description : Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above
Last Answer : A. Prime cost + All Variable overheads
Description : Total cost is the arithmetic sum of (a) AFC and AVC ; (b) FC and Variable cost ; (c) Marginal cost and variable cost; (d) Sunk cost and fixed cost
Last Answer : (b) FC and Variable cost ;
Description : Marginal product is…………. (a) Rate at which total production changes with change in variable input; (b) Rate at which total production changes with change in total cost; (c) Rate at which total production changes with change in fixed cost ; (d) None
Last Answer : (a) Rate at which total production changes with change in variable input;
Last Answer : Variable Cost
Description : Which of the following cost curve is never ‘U’ shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve
Last Answer : Average fixed cost curve
Description : performance of naphthalic anhydride against EPTC was marginal in which type of soils a).clay b). clay loam c). loamy d). sandy silt
Last Answer : d). sandy silt
Description : Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on (a) Increase in GDP ; (b) Inflationary pressure ; (c) Greater employment opportunity; (d) More equitable distribution of income and wealth
Last Answer : (b) Inflationary pressure ;
Description : The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: a. Total physical product begins ... The marginal physical product rises c. The marginal physical product falls d. The average physical product falls
Last Answer : c. The marginal physical product falls
Description : Roberts PLC notices that if it produces fifteen radar detectors, its costs are £1,500 and if it produces sixteen radar detectors, its costs are £1,590. In this instance, £90 is the firm's ________cost. A)average B)fixed C)variable D)marginal E)average variable
Last Answer : D)marginal
Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000
Last Answer : (1) 20000 Explanation: Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment. It is given by the formula: BEQ = FC / (P-VC) Where ... per unit = 30/12 = Rs. 2.5 So 20000/ (2.5-1.5) = 20000/1= Rs. 20,000
Description : )If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - (1) 24 (2) 18 (3) 36 (4) 60
Last Answer : (3) 36 Explanation: The standard method of calculating average variable cost is to divide total variable cost by the quantity, illustrated by this equation : Average Variable Cost = Total Variable Cost/ Quantity of ... , Average Total Cost = 45000/2500 = 18 So Average Variable Cost = 54 - 18= 36
Description : Production cost which increase with the quantity of product made is called ? 1. Absorption Cost 2. High Production Cost 3. Non-fixed cost 4. Variable cost 5. None of these
Last Answer : Variable cost
Description : If the excavation of earth is done manually then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost ... the cost of manual excavation is (A) 500 cum (B) 1000 cum (C) 1500 cum (D) 2000 cum
Last Answer : (A) 500 cum
Last Answer : 20000
Description : If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60
Last Answer : 36
Description : Which is appropriate description of Average Costs? a) The value of opportunities which have been lost by utilizing resources in particular service or health technology. b) The total costs (i.e. all the ... costs. d) The cost of the consumption of medicines is a good example of variable costs.
Last Answer : b) The total costs (i.e. all the costs incurred in the delivery of a service) of a health care system divided by the units of production.
Description : A Unit Price (UP) contract provides: 1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses 2. a reimbursement of allowable cost of services ... unit rates and the final price is dependent on the quantities needed to carry out the work.
Last Answer : 4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work
Description : An expenditure that has been made and cannot be recovered is called - (1) Variable cost (2) Opportunity cost (3) Sunk cost (4) Operational cost
Last Answer : (3) Sunk cost Explanation: In economics and business decision-making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted ... is taken. The sunk cost is distinct from economic loss. Sunk costs may cause cost overrun.
Description : Transfer earning or alternative cost is otherwise known as - (1) Variable cost (2) Implicit cost (3) Explicit cost. (4) Opportunity cost
Last Answer : (4) Opportunity cost
Description : An expenditure that has been made and cannot be recovered is called (1) Variable cost (2) Opportunity cost (3) Sunk cost (4) Operational cost
Last Answer : Sunk cost
Description : Transfer earning or alternative cost is otherwise known as (1) Variable cost (2) Implicit cost (3) Explicit cost (4) Opportunity cost (economic cost)
Last Answer : Opportunity cost (economic cost)
Description : Equilibrium output is deter-mined by: (1) the equality between total Variable cost and Marginal revenue. (2) the equality between Marginal cost and Marginal revenue. (3) the equality between Average cost and Average revenue. (4) the equality between total cost and total revenue.
Last Answer : (2) the equality between Marginal cost and Marginal revenue. Explanation: Equilibrium Output refers to the level of output where the Aggregate Demand is equal to the Aggregate Supply (AD = AS) in an ... because it adds to its profits. He stops producing more only when MC becomes equal to MR.
Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve
Last Answer : (2) long-run average cost curve Explanation: Under perfect competition, the firms operate at the minimum point of long-run average cost curve. In this way, the actual longrun output of ... ideal output. This gives the mea-sure of excess capacity which lies unutilized under imperfect competition.
Description : Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales
Last Answer : A sales forecast is only......
Description : Total profit of a firm in a perfect competitive market is – (a) Total revenue less total cost ; (b) Marginal revenue less marginal cost; (c) Total revenue less marginal cost ; (d) Total revenue less variable cost
Last Answer : (a) Total revenue less total cost ;
Description : Marginal cost can be equal to Average variable cost when (a) Average variable cost is falling ; (b) Average variable cost is increasing; (c) Average variable cost is constant ; (d) Under any of the above situations
Last Answer : (c) Average variable cost is constant ;
Description : Total variable cost curve is explained by (a) Law of the diminishing marginal returns ; (b) The price of the variable inputs; (c) Production function ; (d) All the three
Last Answer : ; (d) All the three
Description : Variable cost is also known as (a) Incremental cost ; (b) Marginal cost ; (c) Differential cost ; (d) All the three
Last Answer : (d) All the three
Description : Equilibrium output is determined by: (1) the equality between total Variable cost and Marginal revenue. (2) the equality betweem Marginal cost and Marginal revenue. (3) the equality between Average cost and Average revenue. (4) the equality between total cost and total revenue.
Last Answer : the equality betweem Marginal cost and Marginal revenue.
Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve
Last Answer : long-run average cost curve
Description : "Marginal Cost" equals - (1) total cost minus total benefit for the last unit produced (2) total cost divided by total benefit for the last unit produced (3) total cost divided by quantity (4) the change in total cost divided by the change in quantity
Last Answer : (4) the change in total cost divided by the change in quantity Explanation: Marginal cost is the change in the total cost that arises when the quantity produced has an increment by unity. That is, it is ... Rs.50,002. That would mean the marginal cost-the cost of producing the next unit- was Rs.2.
Description : In order to maximize profits, a monopoly company will produce that quantity at which the: a. marginal revenue equals average total cost b. price equals marginal revenue c. marginal revenue equals marginal cost d. total revenue equals total cost
Last Answer : c. marginal revenue equals marginal cost
Description : If a firms cost of raw material increases then (a) Market price of the final product will also increase (b) Equilibrium level of quantity also increases ; (c) Marginal cost curve will shift upward (d) Marginal cost curve will shift downward
Last Answer : ; (c) Marginal cost curve will shift upward
Description : “Marginal Cost” equals (1) total cost minus total benefit for the last unit produced (2) total cost divided by total benefit for the last unit produced (3) total cost divided by quantity (4) the change in total cost divided by the change in quantity
Last Answer : the change in total cost divided by the change in quantity
Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.
Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country
Description : The term 'Dumping' refers to - (1) The sale of a substandard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty
Last Answer : (2) Sale in a foreign market of a commodity at a price below marginal cost Explanation: Dumping is an international price discrimination in which an exporter firm sells a portion of its out-put in ... , incurring loss in the foreign market (International Economics by M. Maria. John Kennedy, p.122).
Description : Marginal cost of allowing another person to benefit from a pure public goods is (a) Zero (b) one (c) both (a) and (b) d) more than one
Last Answer : a) Zero
Description : Sales revenue less cost of goods sold is called a. gross profit. b. net profit. c. net income. d. marginal income.
Last Answer : a. gross profit.