CA CHHAVI COMMERCE CLASSES

TEST CLASS XI- MICRO (30 MARKS)

1. State two components of Average cost. 1

2. What is the shape of variable cost.? 1
3. What happen to AC when MC>ATC.? 1
4. TC =FC at zero level of output. comment. 1
5. Define profit. 1
6. Do ATC and AVC curves intersect? Give reasons. 2
7. Why is AC curve U-shaped? 2
8. What will be MP when TP is maximum? 1
9. Prepare a Marginal product schedule when for increasing production ,only one output
is increased. Indicate the different phases. 4
10. If total utility is increasing, marginal utility: 1
A. must be increasing.
B. must be decreasing.
C. may either be increasing or decreasing, although it must be greater than zero.
D. must be increasing at an increasing rate.
11. Which of the following would most likely represent an imputed or implicit cost for
a firm? 1
A. wages for current employees.
B. interest paid on borrowed funds.
C. dividends paid to shareholders of the firm's stock.
D. taxes paid to the local government.
E. interest that could have been received on money currently invested in inventory.
12. Difference between explicit and implicit cost. 2
13. Explain the relation between total utility and marginal utility with the help of
schedule?(4)
14. Explain relation between AC ,AVC and AFC.3
15. Explain producer equilibrium in market situation where quantity can be increased by
lowering the price of a commodity. 5