Micro

Production & Costs

Medium

Match List-I with List-II

List-I List-II
(A) Total Cost (I) Change in total cost when an additional unit of output is produced.
(B) Marginal Cost (II) Vertical summation of Average Fixed Cost (AFC) and Average Variable Cost (AVC) curves.
(C) Fixed Cost (III) Explicit Costs + Implicit Costs.
(D) Short period Average Cost (AC) Curve (IV) Does not change with increase or decrease in output.

Choose the correct answer from the options given below:

List-I	List-II
(A) Total Cost	(I) Change in total cost when an additional unit of output is produced.
(B) Marginal Cost	(II) Vertical summation of Average Fixed Cost (AFC) and Average Variable Cost (AVC) curves.
(C) Fixed Cost	(III) Explicit Costs + Implicit Costs.
(D) Short period Average Cost (AC) Curve	(IV) Does not change with increase or decrease in output.

(A) - (III), (B) - (I), (C) - (I), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 3

Option 3: (A) - (III), (B) - (I), (C) - (IV), (D) - (II) -> Let's match each item correctly:

(A) Total Cost = (III) Explicit Costs + Implicit Costs: Total cost includes all costs incurred by a firm - both explicit costs (actual monetary payments like wages, rent) and implicit costs (opportunity costs like owner's time).

(B) Marginal Cost = (I) Change in total cost when an additional unit of output is produced: This is the textbook definition of marginal cost - it measures the additional cost of producing one more unit.

(C) Fixed Cost = (IV) Does not change with increase or decrease in output: Fixed costs remain constant regardless of production level (e.g., rent, insurance, salaries of permanent staff).

(D) Short period Average Cost (AC) Curve = (II) Vertical summation of Average Fixed Cost (AFC) and Average Variable Cost (AVC) curves: In the short run, AC = AFC + AVC, so the AC curve is obtained by vertically adding the AFC and AVC curves at each output level. -> correct

2026: 15 May Shift 1

Identify the correct statements from the following:

A. SMC curve cuts AVC curve from below at the minimum point of AVC

B. SMC curve cuts the SAC curve from below at the minimum point of SAC

C. Average fixed cost curve is upward sloping

D. LRMC curve cuts the LRAC curve from below at the minimum point of LRAC

Choose the correct answer from below:

2025: 22 May Shift 1

When labor changes from 3 to 4, the total product changes from 24 to 40, calculate the marginal product.

2025: 14 May Shift 1

Which of the following statements are true with regard to the production?

(A) In the short run, at least one of the factors of production remains fixed.

(B) In the long run, all factors of production can be varied.

(D) In the long run, factors of production can be classified into fixed and variable

2025: 29 May Shift 1

In Microeconomics, what does supply refer to?

2025: 13 May Shift 1

In the long run __________.

2025: 27 May Shift 2

In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........

Solution

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