Class 11 Economics Important Chapter 7 Concept of costs

Class 11 Economics Important Chapter 7 Concept of costs Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Economics Important Solutions and select need one. AHSEC Class 11 Economics Additional Notes English Medium Download PDF. HS 1st Year Economics Important Solutions in English.

Class 11 Economics Important Chapter 7 Concept of costs

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam AHSEC Board Class 11 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Economics Important Notes in English for All Chapters, You can practice these here.

Concept of costs

Chapter: 7

PART – A : MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What does the term “implicit cost” represent?

Ans: It represents the imputed value of self-owned and self-supplied inputs used in production.

2. Give one example of a fixed cost in the short run.

Ans: Rent of a building.

3. What type of cost becomes zero when output is zero?

Ans: Variable cost.

4. Why are fixed costs also called “overhead costs”?

Ans: Because they remain constant regardless of the level of output.

5. What is the main reason for the U-shape of the AVC curve?

Ans: The operation of the law of variable proportions.

6. Which costs are directly related to the quantity of output produced?

Ans: Variable costs.

7. What is the relationship between AC and AVC?

Ans: AC is always greater than AVC by the amount of AFC.

8. Which cost curve starts from the origin?

Ans: The TVC curve.

9. What causes the difference between TC and TVC to remain constant?

Ans: The constant value of total fixed cost (TFC).

10. At what point does the MC curve cut the AC curve?

Ans: At the minimum point of the AC curve.

11. Why are variable costs also called “avoidable costs”?

Ans: Because they can be avoided by not hiring variable factors of production.

12. What happens to AFC when output increases?

Ans: AFC decreases.

13. Why is MC not affected by fixed cost?

Ans: Because fixed cost does not change with output.

14. In the short run, which inputs can be adjusted to change the level of output?

Ans: Variable inputs, such as labour and raw materials.

15. What happens to AC if MC is less than AC?

Ans: AC will fall.