The correct answer is Option (1) → (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
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List-I
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List-II
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(A) Payments by a firm for inputs
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(I) Cost of production
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(B) Output sold by a firm in the market
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(II) Revenue
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(C) Inputs are transformed into output
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(III) Production
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(D) Objective of a firm to maximize
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(IV) Profit
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(A) Payments by a firm for inputs — (I) Cost of production In economics, the money a firm spends to acquire factors of production (like labor, raw materials, and rent) is defined as the Cost of Production.
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(B) Output sold by a firm in the market — (II) Revenue The total money received by a firm from selling its finished goods or services in the market is called Revenue (specifically Total Revenue).
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(C) Inputs are transformed into output — (III) Production The process of combining various material and immaterial inputs (man, machine, materials) to create a finished product or service is the definition of Production.
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(D) Objective of a firm to maximize — (IV) Profit A fundamental assumption in microeconomics is that the primary goal of any private firm is Profit Maximization (where Profit = Revenue - Cost).
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