Page 6 - HA-COST

ASSIGNMENT:( 1 Mark question)

1. A producer borrows money from SBI and starts producing the commodity

in his premises. Find out the implicit and explicit cost.
2. Give the meaning of implicit cost. Give one example.
3. Why are TC and TVC curves parallel to each other?
4. Give the meaning of cost?

5. Give two example of overhead cost.

(3/4 MARKS QUESTIONS)

1. Explain the behaviour of TVC curve.
2. Differentiate between explicit and implicit cost.
3. Differentiate between supplementary and prime cost.

4. Classify the following as FC and VC:
(a) Wages of casual labour
(b) Commission to production manager according to the sales
(c) Salary to the manager of the company

(d) Payment of insurance premium
5. What is fixed cost? Calculate the TFC and TVC.

Output 0 1 2 3 4 5
TC 40 80 110 126 135 180

6 Marks questions

1. Explain the relationship between TC, TCV & TFC with the help of
hypothetical schedule & diagram.
2. Fill in the blanks. If the fixed cost is 60.
OUTPUT TFC TVC TC
0 - - -

1 - 18 -
2 - - 90
3 - 42 -
4 - - 112
5 - 60 -
6 - 66 -

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