+91-8076753736 support@wiredfaculty.com

Sponsor Area

Production And Costs

Question

Wired Faculty App

What are the total fixed cost, total variable cost and total cost of a firm? How are they related?

Solution

For meaning of TFC, TVC and TC, see Q. 3.14(a). Their relationship is as under: When output is zero, variable costs are also zero, but even then fixed costs are incurred. Thus at zero level of output, fixed cost and total costs are equal to each other. As output increases, total fixed cost remains constant but total cost and total variable cost go on increasing. Again an increase in TC indicates an increase in TVC only since TFC remains same. Difference between TC and TVC is equal to TFC.

Some More Questions From Production And Costs Chapter

How will an increase in number of firms shifts the market supply curve?

What is the shape of supply curve during very short (market period)?

What is the shape of supply curve during short or long period?

What is the price elasticity associated with a straight line supply curve passing through the origin?

Name three factors that can shift a supply curve.

Give two examples where technological progress leads to a shift in the supply curve.

A new technique of production reduces the marginal cost of producing stainless steel. How will this affect the supply curve of stainless steel utensils?

Because of cyclone in a coastal area, the sea level covers a lot of rice fields. This reduces productivity of land. How will it affect supply curve of rice of that region?

Define market supply of a good.

Mock Test Series

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation