Functional Areas of Business

Q 1. Which cost has no straight relation with units of production?

(A) Fixed cost
(B) Variable cost
(C) Average cost
(D) Marginal cost
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Q 2. Which type of cost curve has hockey shaped?

(A) Average cost
(B) Variable cost
(C) Marginal cost
(D) Total cost
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Q 3. Which type of cost curve is parallel to X axis

(A) Variable cost
(B) Fixed cost
(C) Average Variable cost
(D) Average Fixed cost
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Q 4. How all costs become at long run?

(A) Fixed
(B) Short
(C) Long
(D) Variable cost
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Q 5. Daily wages of labours is the example of which cost?

(A) Fixed cost
(B) Total cost
(C) Variable cost
(D) Marginal cost
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Q 6. How is the slope of fixed cost curve?

(A) Negative
(B) Positive
(C) Parallel to X-axis
(D) Parallel to Y-axis
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Q 7. When proportion of production is zero, then which cost is positive?

(A) Variable
(B) Fixed
(C) Average
(D) Marginal
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Q 8. How is the shape of average cost curve?

(A) Hockey stick
(B) U
(C) V
(D) Square
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Q 9. Total production cost + Unit of production = ------------

(A) Average cost
(B) Marginal cost
(C) Average Fixed Cost
(D) Average Variable Cost
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Q 10. Which cost diminishes but never becomes zero?

(A) Fixed cost
(B) Average fixed cost
(C) Variable cost
(D) Average Variable cost
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