Exam 3: Cost Theory and Production Possibility Curve Analysis

The saucer-type of modern Short run Average Variable Cost (SAVC) represents

If a firm's average cost is Rs.32 at 6 units of output and Rs.34 at 7 unit, which one among the following is the marginal cost of producing the 7th unit

The concept of utility was introduced by

The total fixed cost is a

Which of the following has a U shape?

The U shape of MC curve reflects

In long run, which factor of production is fixed?

When AC minimum in short run

Cardinal utility analysis to consumer equilibrium was developed by

The U shape of the LAC reflects

A production possibility curve is concave to the point of origin because of

The cost that cannot be recovered once spent

Economic cost include both

The cost expressed not in terms of money but in terms of efforts of workers undergone for making the commodity

Implicit cost of a factor of production is determined by its

The shape of TVC and TC are

The MC curve cuts the AC curve at

Under increasing returns to scale, which of the following is the nature of the long run average cost curve?

The minimum point of ATC is at ...................position of the minimum point of AVC

AFC curve will always be