Download App

Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost4 Marks
Question
Define fixed cost. Give an example. Explain with reason the behaviour of Average Fixed Cost as output is increased.
✓

Answer

Fixed cost refers to the cost which does not change with change in output. Example: rent, interest etc. (Any one) As output increases AFC goes on falling continuously because,$\text{AFC}=\frac{\text{TFC}}{\text{Output}}$ and TFC is constant.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Production and cost→Production and cost — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Define revenue. State the relation between marginal revenue and average revenue.
→
Define market supply. Explain the factor 'input prices' that can cause a change in supply.
→
At the market price of Rs. $10$, a firm supplies $4$ units of output. The market price increases to Rs. $30$. The price elasticity of the firm’s supply is $1.25$. What quantity will the firm supply at the new price?
→
Why is the average revenue curve of a firm under perfect competition parallel to x-axis and negatively sloped under monopoly?
→
Calculate TC and AVC of a firm at each given level of output from its cost schedule.
Output(Units)
1
2
3
4
5
6
AFC
60
30
20
15
12
10
MC (₹)
32
30
28
30
35
43
→
How is telephonic interview different from mailed questionnaire method?
→
Complete the following table:
Output (Q) (units) Total Variable Cost (TVC) (₹) Average Variable Cost (AVC) (₹) Marginal Cost (MC) (₹)
1 10 __ 0
2 __ 8 6
3 27 __ __
4 __ 10 13
→
Complete the following table:
Output (units) Total Revenue (₹) Marginal Revenue (₹) Average Revenue (₹)
1
10
-
-
2
8
-
-
3
0
-
-
4
-2
-
-
→
A consumer buys $20$ units of a good at ₹ $10$ per unit. The price elasticity of demand of this good is $(-)1$. Calculate quantity demanded by the consumer when price falls to ₹ $8$ per unit.
→
Explain the feature of firms mutually interdependent in an oligopoly market.
OR
Explain the feature of interdependence of firms in an oligopoly market.
→