Work-sheets:
Questions : (Cost, Revenue)
1. The difference between ‘explicit cost’ & ‘implicit cost’ – Explicit cost refers to
1. What is opportunity cost – The opportunity cost of any good is the
2. What is variable cost – Variable costs are those costs which are.
3. Do fixed costs affect the marginal cost –
4. What are fixed costs – Fixed costs are those costs which are incurred
5. Differentiate between short-run & long-run –
6. What is a production function – A production function
7. What is marginal physical product – Marginal physical product refers to the
8. What does the law of variable proportions state – Acc. to law of variable proportion
9. What is meant by ‘returns to scale’ – Returns to scale refers to
10. Mention two causes of decreasing returns to a factor of production –
1)
2)
11. Give two examples of external economies of scale –
1)
2)
12. Mention two internal diseconomies of scale –
1)
2)
13. What is meant by indivisibility of a factor of production –
Extend Response Questions
14. Define monopoly – Monopoly is a form of market where there
15. Define imperfect competition – Imperfect competition is a form of market where there
16. What is oligopoly – In oligopoly there are
17. What is meant by the term ‘homogeneous goods’ – Homogenous products are those
products?
18. What do you mean by product differentiation – Product differentiation means
19. What do you mean by price discrimination – In monopoly there is
20. What are selling costs – Selling costs are those costs which are
21. Give two distinguishing features of perfect & imperfect competition –