Match List-I with List-II
|
List-I |
List-II |
|
(A) Payments by a firm for inputs |
(I) Cost of production |
|
(B) Output sold by a firm in the market |
(II) Revenue |
|
(C) Inputs are transformed into output |
(III) Production |
|
(D) Objective of a firm to maximize |
(IV) Profit |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
|
List-I |
List-II |
|
(A) Payments by a firm for inputs |
(I) Cost of production |
|
(B) Output sold by a firm in the market |
(II) Revenue |
|
(C) Inputs are transformed into output |
(III) Production |
|
(D) Objective of a firm to maximize |
(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.
-
(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).