Page 2 - HA-COST
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6.  AVC = AC-AFC
                                = TVC

                                      Q
                       ASSESSMENT
                       1.  Which of the following statements is true?

                          (a) AC= AFC-AVC
                          (b) AC=AFC+AVC
                          (c) AFC=AC+AVC

                          (d) AVC=AFC+AC
                              A-(b)
                       2.  If AFC is Rs. 20 at 6 units of output, what will it be at 4 units of
                          output?

                          (a) 60
                          (b) 30

                          (c) 40
                          (d) 20
                              A-(b)
                                                                                          th
                                                                    th
                       3.  If TC at 10 units is 600 and 640 at 11  unit;the MC of 11  unit
                          is_____.
                          (a) 20
                          (b) 30

                          (c) 40
                          (d) 50
                              A-(c )

                       4.  Which of the following statement is false ?
                          (a) AFC+AVC = AC
                          (b) MC depends upon the amount of labour

                          (c) TC=TFC+TVC
                          (d) AC is total cost per unit of output
                              A-(b)
                       5.  With increase in level of output AFC goes on falling till it reaches

                          zero.True or false?

                       ASSIGNMENT


                       (3/ 4 marks question)


                    1.  Suppose a firm’s TFC is Rs 100 and its MC schedule is the following:
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