Production And Costs CBSE Questions & Answers

Production And Costs

This is Economics Class 12 Production and Costs CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
The defined shape of AFC is due to
  • A
    Variable TFC
  • B
    Constant TC
  • C
    U shape of MC
  • D
    Constant TFC
    Correct
2
AC and AVC curves never meet each other because
  • A
    Their difference is AFC is always greater than zero
    Correct
  • B
    Their difference is AFC is always negative
  • C
    Their difference is MC is always greater than zero
  • D
    Their difference is AFC is always greater than AC
3
Can the AC be less than the MC when AC is rising
  • A
    None of these
  • B
    No
    Correct
  • C
    Can’t say
  • D
    Yes
4
Can the AC be more than the MC when AC is rising
  • A
    None of these
  • B
    No
  • C
    Yes
    Correct
  • D
    Can’t say
5
Can the AC be equal to MC when AC is rising
  • A
    Can’t say
  • B
    Yes
  • C
    None of these
  • D
    No
    Correct
6
Can the AC be less than the MC when AC is falling
  • A
    Yes
  • B
    None of these
  • C
    No
    Correct
  • D
    Can’t say
7
Can the AC be more than the MC when AC is falling
  • A
    Yes
    Correct
  • B
    None of these
  • C
    Can’t say
  • D
    No
8
Can the AC be equal to MC when AC is rising
  • A
    Can’t say
  • B
    Yes
    Correct
  • C
    None of these
  • D
    No
9
When AC equals MC which of them is at its minimum
  • A
    AC
    Correct
  • B
    None
  • C
    Both
  • D
    MC
10
AR is more elastic in monopolistic competition than in monopoly as
  • A
    Many close substitutes do not exist in monopolistic competition
  • B
    Many close substitutes do not exist in monopolistic competition
  • C
    Many close substitutes exist in monopolistic competition
    Correct
  • D
    Many close substitutes exist in monopoly competition
11
AR is less elastic in monopoly than in monopolistic competition as
  • A
    Many close substitutes exist in monopolistic competition
    Correct
  • B
    Many close substitutes exist in monopoly competition
  • C
    Some substitutes exist in monopoly
  • D
    Many close substitutes do not exist in monopolistic competition
12
AR is same as MR in perfect competition as
  • A
    Price does not remain fixed
  • B
    Price remains fixed
    Correct
  • C
    Price can rise
  • D
    Price may fall
13
TR is always a 45 degree angle in perfect competition market as
  • A
    Price remains fixed
    Correct
  • B
    Price may fall
  • C
    Price can rise
  • D
    Price does not remain fixed
14
There can be a Break- even point with AR = AC as
  • A
    Not always
  • B
    No
  • C
    May be always
  • D
    Yes
    Correct
15
Can the AC be more than the MC when AC is rising
  • A
    No
  • B
    None of these
  • C
    Yes
    Correct
  • D
    Both are not releated