Cost Concept

The output on which total revenue equals total cost is known as Options Aprofit-maximizing output B)break-even level output C)loss-minimizing output D)least-cost output Total fixed cost measures the cost of Options A)all plant and machinery B)all assets where quantity cannot be varied in the short-run C)all assets on which the firm has control D)property owned by the firm If one orange costs ₦20 and one kilogram of beer costs ₦400, the opportunity cost of one kilogram of beer is Options A)₦350 B)400 oranges C)20 oranges D)4 oranges Which of the following best describes the concept of opportunity cost? Options A)A special bargain or sale at below market price B)Costs for inputs tend to go up as we use more of them C)Goods that are not produced in order to produce more of another good. D)A cost that constantly decreases The expression of cost in terms of alternative forgone is referred to as ____? Options A)Scarce resources B)Decision making C)Opportunity cost D)Choice The most important cost curve for the firm is_________ A)MC B)AC C)TC D)FC Dividing total variable cost by quantity of output gives A Total cost (TC) B Total Fixed Cost (TFC) C Variable cost (VC) D Average Variable Cost (AVC) Average Variable Cost (AVC) curve A is U-shaped B rises from left to right C Slopes upwards D is horizontal to the X-axis The cost incurred by using both fixed and variable factors in production is called A marginal cost B fixed cost C total cost D average cost