Cost Analysis and Theory Quiz
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Questions and Answers

Which of the following is a determinant of short-run cost?

  • Productivities of factors of production
  • Time period
  • Level of output (correct)
  • Price of input factors
  • Which type of cost refers to the cost of attracting a resource from its next best alternative use?

  • Actual cost
  • Sunk cost
  • Opportunity cost (correct)
  • Historical cost
  • Which of the following is a type of cost?

  • Output stability
  • Laws of returns
  • Lot size
  • Controllable cost (correct)
  • What does Total Fixed Cost (TFC) represent?

    <p>Cost of production remains constant whatever the level of output</p> Signup and view all the answers

    Which of the following is a determinant of economic cost?

    <p>Levels of capacity utilization</p> Signup and view all the answers

    Study Notes

    Cost Determinants

    • The price of a variable input is a determinant of short-run cost.

    Types of Cost

    • Opportunity cost refers to the cost of attracting a resource from its next best alternative use.
    • Opportunity cost is a type of cost.

    Total Fixed Cost (TFC)

    • Total Fixed Cost (TFC) represents the cost of fixed inputs that do not vary with the level of output.

    Economic Cost

    • Opportunity cost is a determinant of economic cost.

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    Description

    Test your knowledge of cost analysis and cost theory with this quiz. Topics include economic cost, cost determinants, level of output, price of input factors, and more. Put your skills to the test and see how well you understand the factors that affect costs in business.

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