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Test: Theory Of Cost- 3 - CA Foundation MCQ


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30 Questions MCQ Test Business Economics for CA Foundation - Test: Theory Of Cost- 3

Test: Theory Of Cost- 3 for CA Foundation 2024 is part of Business Economics for CA Foundation preparation. The Test: Theory Of Cost- 3 questions and answers have been prepared according to the CA Foundation exam syllabus.The Test: Theory Of Cost- 3 MCQs are made for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Theory Of Cost- 3 below.
Solutions of Test: Theory Of Cost- 3 questions in English are available as part of our Business Economics for CA Foundation for CA Foundation & Test: Theory Of Cost- 3 solutions in Hindi for Business Economics for CA Foundation course. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free. Attempt Test: Theory Of Cost- 3 | 30 questions in 30 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Business Economics for CA Foundation for CA Foundation Exam | Download free PDF with solutions
Test: Theory Of Cost- 3 - Question 1

Which of the following is known as the Envelope Curve?

Test: Theory Of Cost- 3 - Question 2

A firm producers 10 units of a commodity at an average total cost of Rs. 200 and with a fixed cost of Rs. 500. Find out the component of average variable cost in the total cost:

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Test: Theory Of Cost- 3 - Question 3

A firm will close down in the short period if its average revenue is less than its:

Test: Theory Of Cost- 3 - Question 4

The average fixed cost for producing an output of 6 units of a product by a firm is Rs. 30. The same cost for producing an output of 4 units will be Rs. _________.

Test: Theory Of Cost- 3 - Question 5

Long run price is also called by the name of ________.

Test: Theory Of Cost- 3 - Question 6

Which of the following cost curve will slope downward and does not touch the x-axis?

Test: Theory Of Cost- 3 - Question 7

Consider the following data 

The Average Variable Cost (AVC) for an output of 4 units will be:-

Test: Theory Of Cost- 3 - Question 8

 Average Revenue Curve is also known as _________.

Test: Theory Of Cost- 3 - Question 9

Payment made to outsiders for their goods and services are called :

Test: Theory Of Cost- 3 - Question 10

When AC curve is rising, the MC curve must be ________ to it

Test: Theory Of Cost- 3 - Question 11

What will be the total fixed cost for the production of three units as per the details given below?

Test: Theory Of Cost- 3 - Question 12

A firm encountering economies of scale over some range of output will have a:

Test: Theory Of Cost- 3 - Question 13

 In which of the following cases opportunity cost concept applies?

Test: Theory Of Cost- 3 - Question 14

Calculate AFC at 2nd unit of output 

Test: Theory Of Cost- 3 - Question 15

Which statement among below is correct in reference in Average Fixed Cost

Test: Theory Of Cost- 3 - Question 16

Opportunity cost is : 

Test: Theory Of Cost- 3 - Question 17

What will be the TVC if we produce 2 units?
Units  0    1    2
TC    20  37  50

Test: Theory Of Cost- 3 - Question 18

Which curve is never U-shaped?

Test: Theory Of Cost- 3 - Question 19

External economies accrue due to ________:

Test: Theory Of Cost- 3 - Question 20

Average Revenue Curve is also known as _________.

Test: Theory Of Cost- 3 - Question 21

 Which one of the following is correct?

Test: Theory Of Cost- 3 - Question 22

When shape of average cost curve is upward, marginal cost : 

Test: Theory Of Cost- 3 - Question 23

Which of the following is known as Envelope curve?

Test: Theory Of Cost- 3 - Question 24

Payment made to outsiders for their goods and services are called :

Test: Theory Of Cost- 3 - Question 25

 Long run price is also called by the name of ________.

Test: Theory Of Cost- 3 - Question 26

 AFC curve is: 

Detailed Solution for Test: Theory Of Cost- 3 - Question 26

The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases. AFC is equal to the vertical difference between ATC and AVC. Variable returns to scale explains why the other cost curves are U-shaped.

Test: Theory Of Cost- 3 - Question 27

A firm’s average fixed cost is Rs. 40 at 12 units. What will be the average fixed cost at 8 units:

Test: Theory Of Cost- 3 - Question 28

Which of the following cost curves is never ‘U’ shaped?

Test: Theory Of Cost- 3 - Question 29

 Calculate total cost of 4 units:

Test: Theory Of Cost- 3 - Question 30

Which of the following cost curves is never ‘U’ shaped?

Detailed Solution for Test: Theory Of Cost- 3 - Question 30

Average fixed cost curve is never U-shaped. The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a larger volume when the quantity produced increases.

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