Costs incurred only when production occurs are known as:

Related MCQs

• Suppose that a firm produces 200,000 units a year and sells them all for Rs.10 each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
• With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is:
• Marginal costs and average variable costs are equal when
• If the short-run average variable costs of production for a firm are rising, then this indicates that:
• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• Which cost is to be incurred by a firm even if output is zero:
• The curve showing the possibilities of production of desired good is known as:
• Implicit costs are:
• If a firm's revenues just cover all its opportunity costs, then:
• Variable costs are: