Micro

Production & Costs

Medium

Arrange the given statements to show the impact on a firm's supply curve due to its determinants.

(A) Organisational innovation allows the firm to use fewer units of inputs.

(B) Any factor that affects a firm's marginal cost curve is a determinant of its supply curve.

(C) At any given market price, the firm now supplies more units of output.

(D) The marginal cost will shift downward.

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(B), (A), (C), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

✅ Correct Option: 3

Option 3: (B), (A), (D), (C) -> This is the correct logical sequence showing the impact on a firm's supply curve. It starts with the general principle (B) that any factor affecting marginal cost determines the supply curve. Then it provides a specific example (A) of organizational innovation reducing input usage. This leads to (D) a downward shift in marginal cost, which ultimately results in (C) the firm supplying more units at any given price. This sequence clearly demonstrates the cause-and-effect relationship from determinants to supply curve changes. -> correct

2025: 28 May Shift 1

The short run supply curve is represented as?

The rising part of the marginal cost curve.
The rising part of the marginal cost curve from and above the minimum average variable cost curve.
The rising part of the marginal cost curve from and above the minimum average cost curve.
The marginal cost curve.

2025: 3 June Shift 1

The problem of 'what to produce' relates to?

2025: 30 May Shift 2

Choose the correct statements from the options given below in terms of the shapes of the short run cost curves.

(A) Average fixed cost curve is a rectangular hyperbola.

(B) Total fixed cost is horizontal straight line.

(D) Marginal cost is U shaped.

Choose the correct answer from the options given below:

2026: 11 May Shift 1

What happens to the total cost (TC) of production if the quantity of output in the production is reduced to 0 (zero)?

Where, TC=Total cost, FC=Fixed Cost, VC=Variable Cost.

2025: 13 May Shift 1

Marginal cost curve intersects average cost curve at ..........

2025: 30 May Shift 1

At zero level of output ,if the total cost(TC) is 20. What will be the value of the Average Fixed cost (AFC) at the 6th level of output?

Solution

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