# Producer Behaviour and Supply-Cost (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 33 - 42 of 47

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## Question number: 33

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 - 94) 80 5 20 150 (110 + 40) 30 (150 - 120) 100

… (19 more words) …

## Question number: 34

True-False▾

### Following Statement is true or false:

Average cost falls only when marginal cost falls.

## Question number: 35

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

True-False▾

### Following Statement is true or false:

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

## Question number: 37

### Write in Short

Give the meaning of opportunity cost.

## Question number: 38

### Write in Short

Define fixed cost

## Question number: 39

### Write in Short

Why is average total cost greater than average variable cost?

## Question number: 40

True-False▾

### Following Statement is true or false:

When marginal cost rises, average cost will also rise.

## Question number: 41

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 10 38 40 2 5 10 47 50 3 6 10 57 60 3

… (49 more words) …

## Question number: 42

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 output level Examples Rent, salary Wages, Packing Expenses

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