Q. Which cost has no straight relation with units of production?
✅ Correct Answer: (A)
Fixed cost
Functional Areas of Business MCQs and Notes
Q. Which type of cost curve has hockey shaped?
✅ Correct Answer: (C)
Marginal cost
Q. Which type of cost curve is parallel to X axis
✅ Correct Answer: (B)
Fixed cost
Q. How all costs become at long run?
✅ Correct Answer: (D)
Variable cost
Q. Daily wages of labours is the example of which cost?
✅ Correct Answer: (A)
Fixed cost
Q. How is the slope of fixed cost curve?
✅ Correct Answer: (C)
Parallel to X-axis
Q. When proportion of production is zero, then which cost is positive?
✅ Correct Answer: (B)
Fixed
Q. How is the shape of average cost curve?
✅ Correct Answer: (B)
U
Q. Total production cost + Unit of production = ------------
✅ Correct Answer: (B)
Marginal cost
Q. Which cost diminishes but never becomes zero?
✅ Correct Answer: (B)
Average fixed cost