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प्रश्न
Answer the following question:
Explain the concept of Total Cost, Average Cost and Marginal Cost.
उत्तर
Total cost refers to the total cost of production that is incurred by a firm to carry out the production of goods and services. It is the aggregate of expenditure incurred on fixed factors, as well as variable factors. That is,
TC = TFC + TVC
Average cost is defined as the per unit cost of producing output. It is derived by dividing total cost by the quantity of output produced. That is,
Average Cost = TCTQ
Marginal cost is defined as the additional cost to the total cost, which is incurred for producing one more unit of output. It can be calculated by either of the following two formulas:
a. MCn = TCn – TCn– 1
b. MC = `"Change in total cost"/"Change in quanity of output"`
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संबंधित प्रश्न
Price discrimination
Define market supply.
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Explain how input prices are a determinant of supply of a good by a firm.
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Give reasons or Explain the following statements. (Any Three)
Agricultural goods are exceptions to the law of supply.
Write Explanatory answer. (Any Two )
What do you mean by aggregate supply? Explain deteminants of aggregate supply?
Give reasons or explain the following statement:
Supply cannot exceed stock.
State with reasons, whether you Agree or Disagree with the following statements.:
Market supply depends upon price only.
State Whether the following statements are TRUE or FALSE:
Due to the use of modern production technique supply will decrease.
Choose the correct answer :
In the long term supply becomes _________.
Give reasons or explain the following statement:
Due to speedy transport supply increases.
Fill in the blank with appropriate alternative given below
_________________________ determines the potential supply.
Define or explain the following concept:
Marginal Cost
Define or explain the following concept:
Average Revenue
Write short note on the following:
Percentage method.
