Page 5 - HA-COST
P. 5
ASSESMENT:
1.Normal profit earned by a firm are included in
a) Implicit cost b) Explicit cost
b) Fixed cost d) Variable cost
2.Suppose investment in fixed assets is Rs.2000/- , Annual depreciation isRs.
100/- Imputed rent of the building is Rs. 1500/-, estimated annual management
service by the owner is Rs. 240/-. The Implicit cost is ___________.
(a)3500/- b)1600/-
c) 2240 d)1740/-
3.Both TC & TVC start from the same point. True or False ?
4. TC = TVC at the ________ level of output.
5. The cost, which is never zero even when the production is stopped is known
as____________.
a)Prime cost b) Supplementary cost
c) Implicit cost d) Explicit cost
