WORKSHEET-5

CHAPTER-COST
Topic:-
 Types of cost
 Differences between different concepts of cost
 Numerical
Types of cost:-
1. What is explicit cost? Give example.
2. Define implicit cost? Give example.
3. What are social and private costs?
4. Define total fixed cost. Comment on its shape.
5. What is TVC? Explain its behavior.
6. What is AFC? How does it behave?
7. Define average cost. What shape it has and why?
8. What is marginal cost? Why it is ‘U’ shaped?
Differences:-
9. Explain relationship between TC and TVC.
10. Explain relationship between AC and AVC?
11. How TVC and MC relates with each other?
12. Explain relationship between AC and MC.
Numericals:-
13. Find out following:-
TC ,TVC, AFC,AC,AVC,TFC
Q 0 1 2 3 4 5 6
MC - 10 5 3 7 15 22
{AFC at 4th unit is 1.25}
14. Calculate following:-
TVC,TFC,AFC,AVC,AC and MC
Q 0 1 2 3 4
TC 15 25 30 40 57
15. Calculate following:-
TC, TVC,TFC,AVC and MC
Q 1 2 3 4 5
AC 15 12 10 17 25
16. Fill in the blanks:-
Q AFC MC TC
1 - - 72
2 - 10 -
3 20 8 -
4 - - 99
5 - 10 -
17. Complete the table:-
Q 1 2 3 4 5
MC 60 - - 54 -
AVC - - 54 - 57
TC 120 174 - - 345
AFC - - - 15 -