Q3 of 25 Page 1

Mention any two examples of the implicit cost incurred by a firm.

OR


Define variable cost.


implicit cost is, that has occurred but has not been reported as a separate expense. It signifies an opportunity cost that arises when a company uses internal resources toward a project without any explicit compensation for the utilization of resources.


OR


the number of goods and services that a company produces is called a variable cost. The variable cost increases or decreases according to the volume of production. The variable cost is different for companies. The variable cost for a car manufacturing company will never be similar to that of electronics appliance company.


More from this chapter

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1

The shape of the average revenue curve under perfect competition would be ______Horizontal line__ _. (Fill up the blank)

 2

Shift from Point A on Production Possibility Curve X11Y1to Point B on X2Y2in the given figure indicates : (Choose the correct alternative)


 4

The coefficient of price elasticity of supply of a good is 3. It is known as

__________ . (Choose the correct alternative)


 5

Discuss briefly the central problem of ‘‘How to produce’’.

OR


Classify the following statements into positive economics or normative economics, with suitable reasons :


(a) The autonomy of the central bank of a country should be maintained as per the law.


(b) Nominal Gross Domestic Product (GDP) is calculated based on ‘current year prices'.