EASY
CA Foundation
IMPORTANT
Earn 100

Economic costs of production differ from accounting costs of production because

50% studentsanswered this correctly

Important Questions on Theory of Production and Cost

EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Accounting Cost Concepts and Economics Costs>Q 132
Accounting Costs are also called as _____ costs whereas the cost of factors owned by the entrepreneur himself and employed in his own business is called as _____ costs.
EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Outlay Costs and Opportunity Costs>Q 137
If the market price of good is more than the opportunity cost of producing it, then:
EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Historical Costs and Replacement Costs>Q 157
Usually in the case of continuous decrease in price of an asset, which one of the following shall be the highest?
EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Private Costs and Social Costs>Q 159
The Cost of resources for which the firm is not required to pay price is called as _____ cost.
EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Total Cost>Q 172
Suppose output increases in the short run. Total cost will:
EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Fixed Cost>Q 176
If fixed cost is plotted on a graph taking output on X-axis and Cost on Y axis, the Fixed cost will be represented by _____
EASY
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Cost Function>Q 167
The Cost function expresses the relationship between _____ and _____ .
MEDIUM
CA Foundation
IMPORTANT
Business Economics & Business and Commercial Knowledge>Chapter 3 - Theory of Production and Cost>Total Cost>Q 173

Calculate total cost of 4 units :

Units Total cost(₹) Marginal cost (₹)
2 80 40
4 - 30