Practice - Short Run Costs
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Practice Questions
Test your understanding with targeted questions
Define total fixed cost.
💡 Hint: Think about expenses that don't change.
What is the relationship between total variable cost and output?
💡 Hint: Variable costs change with production.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for total cost?
💡 Hint: Think about how we assess all expenses.
True or False: Total Fixed Cost changes with the level of production.
💡 Hint: Consider costs that are unaffected by production levels.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A firm pays Rs 100 for rent (TFC) and Rs 60 in materials (TVC) when producing 10 units. Determine TC, AVC, and AFC.
💡 Hint: Start by calculating total cost first, then break it down into averages.
A company's SMC is Rs 14, and its AVC is Rs 12. What can you infer about the AVC if production increases?
💡 Hint: Refer back to the relationship between SMC and AVC.
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Reference links
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