[Solved] The fixed cost on such factors of production which are neither hired nor bought by the firm is called -

McqMate

Q.	The fixed cost on such factors of production which are neither hired nor bought by the firm is called -
A.	social cost
B.	opportunity cost
C.	economic cost
D.	surcharged cost
Answer» A. social cost
Explanation: Social cost is defined as a sum of the private cost and external costs. The social cost is generally not borne by an individual. It may be borne by entire society, city or even country. This is not a one-time cost like private cost. This cost is recurrent and it is very difficult to calculate due to the inclusion of external costs. The cost may result from an event, action, or policy changes. Social costs are not calculated whenever a seller sells any product or item to buyer. This cost is added up from the use of that product.

1.6k

0

Do you find this helpful?

13

View all MCQs in

Discussion

No comments yet

Related MCQs

The condition in which the independent flow of goods and services in international exchange is neither restricted nor encouraged by direct government intervention is known as:
If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm -
When average cost production (AC) falls, marginal cost of production must be -
he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are -
The economic agent who perceives market opportunities and assembles the factors of production to exploit them in a firm is referred to as
The reduction of the fixed official rate at which one currency is exchanged for another in a fixed exchange rate regime is termed:
The addition to total cost by producing an additional unit of out-put by a firm is called -
The four factors of production are -
Which of the following is not a fixed cost?
As output increases, average fixed cost