COST AND MARKET ANALYSIS

WHICH OF THE FOLLOWING COSTS IS CONSIDERED AS THE COST OF PRODUCTION FOR A PRODUCTION UNIT IN ECONOMICS THEORY ?

• ACCOUNTING COST

• REAL COST

• EXTERNAL COST

• ECONOMIC COST

What makes the total cost curve run parallel with the total variable cost in the short run production unit?

• The total fixed cost remains same always

• The total cost curve depends on the total variable cost with the change in the level of output only.

• The total cost curve follows the law of increasing returns

• The total cost curve is inverted S shaped.

When Akhil, Eshaan, and Saisha work together, why does the total variable cost first increase at a decreasing rate?

• The fixed factor gets employed

• The variable factor starts using the fixed factor efficiently

• The variable factor keeps on increasing as to raise the output

• Labour effectively works with the given set of technology

Which of the following costs follow the law of variable proportions?

• TFC

• AFC

• MC

• ATC

HOW IS A OLIGOPOLIST MARKET STRUCTURE DIFFERENT FROM A MONOPOLIST MARKET STRUCTURE ? STATE ATLEAST 4 POINTS TO POINT OUT THE DIFFERENCE .

What is the demand curve for an oligopolist market structure?

• Definite

• Perfectly Elastic

• Unitary

• Undefined

What makes the market of a perfectly competitive market and a monopolistic market different?

• Freedom of entry and exit

• Larger number of sellers than buyers

• Larger number of homogenous products

• Differentiated products

STATE THE 3 MAJOR PROPERTIES OF THE ATC ,AVC & AFC CURVE IN THE SHORT RUN PRODUCTION UNIT

WHICH OF THE FOLLOWING FACTORS RESULT IN THE NEGATIVE RETURNS OF THE PRODUCTION UNIT

• OVERCROWDING

• INEFFICIENCY OF THE VARIABLE FACTORS IN THE LONG RUN

• FULLER UTILISATION OF THE RESOURCES

• TECHNOLOGY BECOMES OBSOLETE

STATE THE STAGES OF THE LAW OF VARIABLE PROPORTIONS WITH RESPECT TO MARGINAL PRODUCT AND TOTAL PRODUCT ONLY