production cost

physical cost

opportunity cost

real cost

It represents the least cost input combination for producing each level of output.

It is derived from a series of short run average cost curve.

The short run cost curve at the minimum point of the long run average cost curve represents the least-cost plant size for all levels of output.

As output increases, the amount of capital employed by the firm increases along the curve.

Long run average cost curve

Short-run average cost curve

Average variable cost curve

Average total cost curve

price does not at least cover the average total cost.

Price does not equal marginal cost.

economies of scale are being reaped.

price is greater than long run average cost.

Interest that could have been earned on retained earning used by the firm to finance expansion.

The payment of rent by the firm for the building in which it is housed.

The interest payment made by the firm for borrowal from a bank

The payment of wages by the firm.

The interest payments on loans.

The franchiser's fee that a restaurant must pay to the national restaurant chain.

The monthly rent on office space that is leased for a year.

The payroll taxes that are paid on employees' wages.

nothing, because you found the money.

Rs. 100 (because you could have used Rs. 100 to buy other things) plus the value of your time spent at the game.

Rs. 100 (because you could have used Rs. 100 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game.

Rs 100 (because you could have used Rs. 100 to buy other things).

remains the same whatever the level of output

increases as output increases

diminishes as output increases

all of the above

MC > AC

MC > AC

MC = AC

none of these

Interest and principle

Assets and liabilities

Interest and assets

Principle and bonds

the firm is incurring an economic loss

implicit costs are Rs. 25,000

the total economic costs are Rs. 1,00,000

the individual is earning an economic profit of Rs 25,000

World Bank

State Govt.

Central Govt.

RBI

Economic costs include the opportunity costs of the resources owned by the firm.

Accounting costs include only explicit costs.

Economic profit will always be less than accounting profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs.

Accounting profit is equal to total revenue less implicit costs.

Paper deposits

Nominal deposits

Cash deposits

Real deposits

credit and fiscal policy of the economy

debit and fiscal policy of the economy

credit and monetary policy of the economy

none of these

direct sales of securities

indirect sales of securities

purchase and sales of bills

all of these

Make loans

Make deposits

Oversee bank activities

Handle withdrawals

the govt. coming to the rescue of poor farmers

the central bank coming to the rescue of other banks in financial crisis

commercial banks in coming to the rescue of small industrial units

none of these

minimum cash reserve with RBI

minimum liquid assets in the form of cash, gold and approved securities

a maximum ratio of cash holding to total liabilities of bank

a minimum ratio of cash holding to total liabilities of bank

The money you spend on a theatre shown

The money you could have made if you had stayed at home and worked

The money you spent on airline tickets

The money you spent on food