Questions

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11 questions · self-marked practice — reveal the answer and mark yourself.

Question 21 Mark
When total product increases at ________, marginal product decreases but remains positive.
Answer
When total product increases at diminishing rate, marginal product decreases but remains positive.
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Question 41 Mark
Total variable cost is zero when output is _______.
Answer
Total variable cost is zero when output is Zero.
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Question 51 Mark
The sum of Fixed Cost and _______ is Total Cost.
Answer
The sum of Fixed Cost and Variable cost is Total Cost.
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Question 61 Mark
________ shows the functional relation between physical inputs and physical output of a good.
Answer
Production Function shows the functional relation between physical inputs and physical output of a good.
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Question 71 Mark
Rent, wages of permanent staff are the examples of _______.
Answer
Rent, wages of permanent staff are the examples of total fixed cost.
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Question 81 Mark
_________ refers to change in total cost due to additional unit of a commodity is produced.
Answer
Marginal costs refers to change in total cost due to additional unit of a commodity is produced.
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Question 91 Mark
_________ is the actual money expenditure on input.
Answer
Explicit cost is the actual money expenditure on input.
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Question 101 Mark
_______ is per unit fixed cost of production of a commodity.
Answer
Average fixed cost is per unit fixed cost of production of a commodity.
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Question 111 Mark
As output increases, AC and AVC tends to be closer but the difference between AC and AVC can never be ________.
Answer
As output increases, AC and AVC tends to be closer but the difference between AC and AVC can never be zero.
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