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प्रश्न
What is meant by cost in economics?
उत्तर
Cost of production is the expenditure incurred by a firm on the factor inputs such as land, labour, capital and entrepreneur and non-factor inputs such as raw materials for the production of a good.
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संबंधित प्रश्न
An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and explicit cost from this information. Explain
A producer borrows money to run a business but manages the business himself. Identify implicit cost.
Define cost. State the behaviour of (a) Total Fixed Cost and (b) Total Variable Cost as output is increased.
A farmer invests his own saving in doing farmings but hires labour to do work. Identify implicit cost.
When the total fixed cost of producing 100 units is Rs 30and the average variable cost Rs 3, total cost is : (Choose the correct alternative)
(a) Rs 3
(b) Rs 30
(c) Rs 270
(d) Rs 330
Complete the following table:
|
Output (Units) |
Average Fixed Cost (Rs ) |
Marginal Cost (Rs) |
Average Variable Cost (Rs) |
Average Cost (Rs) |
| 1 | 60 | 20 | ... | ... |
| 2 | ... | ... | 19 | ... |
| 3 | 20 | ... | 18 | ... |
| 4 | ... | 18 | ... | ... |
| 5 | 12 | ... | ... | 31 |
From the following total cost and total revenue schedule of a firm, find out the level of output, using marginal cost and marginal revenue approach, at which the firm would be is equilibrium. Give reasons for your answer.
| Output (Units) |
Total Revenue (Rs ) |
Total Cost (Rs ) |
| 1 | 10 | 8 |
| 2 | 18 | 15 |
| 3 | 24 | 21 |
| 4 | 28 | 25 |
| 5 | 30 | 33 |
Complete the following table:
| Output (Units) |
Average Fixed Cost (Rs ) |
Marginal Cost (Rs ) |
Average Variable Cost (Rs ) |
Average Cost (Rs ) |
| 0 | 30 | |||
| 1 | ... | ... | 30 | |
| 2 | 78 | ... | ... | ... |
| 3 | ... | 23 | ... | 10 |
| 4 | ... | ... | 23 | ... |
| 5 | 150 | ... | ... | 6 |
From the following table find out the level of output at which the producer will be in equilibrium (use marginal cost and marginal revenue approach).Give reasons for your answer.
| Output (Units) |
Total Revenue (Rs ) |
Total Cost (Rs ) |
| 1 | 16 | 14 |
| 2 | 30 | 27 |
| 3 | 42 | 39 |
| 4 | 52 | 49 |
| 5 | 60 | 61 |
Complete the following table:
| Output (units) |
Average Fixed Cost (Rs) |
Average Variable Cost (Rs) |
Marginal Cost (Rs) |
Total Cost (Rs) |
| 1 | 120 | 40 | ... | ... |
| 2 | 60 | 56 | ... | 232 |
| 3 | ... | 54 | ... | ... |
| 4 | 30 | ... | 54 | ... |
| 5 | ... | ... | ... | ... |
Distinguish between fixed and variable costs. Give one example of each.
Briefly explain the concept of the cost function.
Answer the following question.
Mention any two examples of the implicit costs incurred by a firm.
