Economics MCQS with Answers 1st Year Chapter 13

Average cost and marginal cost curves in the short-run are:

Linear function

Log function

Cubic function

Quadratic function

TVC

starts from origin

is parallel to x-axis

not from origin

is parallel to y-axis

All inputs can be varied in

long run

both periods

non of the period

short run

Pollution which is side effect of producing or consuming something and which is not taken into account by producers and sellers is called

extra cost

opportunity cost

wastage

externality

Short run means is a period

in which no input can be changed

less than one year

in which at least one input is fixed

in which firms can easily enter or exit

Which on of the following represents fixed cost:

Rent of land

Wages

Price of raw material

Interests on loan

TC

starts from origin

not from origin

parallel to x- axis

is parallel to y-axis

The shape of rectangular hyperbola is made by

MC

AVC

AFC

TFC

In monopoly at various output levels

AR and MR curves are parallel

AR > MR

AR < MR

AR = MR

Lowest point on the average cost curve in the long-run represents;

Maximum level of total revenue

Maximum level of output

Optimum factors combination

None of the three