Producer Behaviour and Supply-Cost (CBSE Class-12 Economics): Questions 33 - 42 of 47

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Question number: 33

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Complete the following table:

Output (units)

Average Variable cost ( Rs. )

Total cost

Marginal cost

1

-

60

20

2

18

-

-

3

-

-

18

4

20

120

-

5

20

-

-

Explanation

swer: -

Output (units)

Average Variable cost ( Rs. )

Total cost

Marginal cost

TVC

1

20 (20/1)

60

20

20

2

18

76 (36 + 40)

16 (94 - 76)

36 (18 × 2)

3

18 (54/3)

94 (76 + 18)

18

54

4

20

120

26 (120 -… (71 more words) …

Question number: 34

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

Average cost falls only when marginal cost falls.

Question number: 35

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

The difference between average total cost and average variable cost decrease with decrease in the level of output.

Question number: 36

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

The difference between average total cost and average variable cost is constant.

Question number: 37

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Give the meaning of opportunity cost.

Question number: 38

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Define fixed cost

Question number: 39

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Why is average total cost greater than average variable cost?

Question number: 40

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

When marginal cost rises, average cost will also rise.

Question number: 41

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Given below is cost and revenue schedule of a producer. At what level of output is producer in equilibrium? Give reasons for your answer.

Output (Units)

Price ( Rs. )

Total cost ( Rs. )

1

10

13

2

10

22

3

10

30

4

10

38

5

10

47

6

10

57

7

10

71

Explanation

In this cost and revenue schedule of a producer is given

Output (Units)

Price ( Rs. )

Total cost ( Rs. )

Total Revenue

TR = Price × Output

Profit = TR - TC

1

10

13

10

-3

2

10

22

20

-2

3

10

30

30

0

4… (73 more words) …

Question number: 42

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between fixed cost and variable cost giving example.

Explanation

Characteristics

Fixed cost

Variable cost

Definition

Fixed cost means it is indirect cost it is not dependent on level of goods or services.

Variable cost means cost of labor, material and change in volume of production.

Behavior

It is constant for given time period

It changes with change in the… (8 more words) …

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