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Theory of Costs
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Wages paid to workers is an example of
1 point
explicit cost
implicit cost
opportunity cost
none of these
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When production level is zero, total cost will be
1 point
zero
equal to fixed cost
equal to variable cost
equal to marginal cost
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Average Fixed Cost (AFC) is indicated by
1 point
a rectangular hyperbola
a straight line parallel to Y-axis
a straight line parallel to X-axis
a U-shaped curve
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If total cost of producing 4 units is Rs 120 and of 5 units it is Rs 140, marginal cost of fifth unit will be
1 point
Rs 30
Rs 24
Rs 20
Rs 260
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Option 1
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