Match List-I with List-II
|
List-I |
List-II |
|
(A) Total Cost |
(I) Change in total cost when an additional unit of output is produced. |
|
(B) Marginal Cost |
(II) Vertical summation of Average Fixed Cost (AFC) and Average Variable Cost (AVC) curves. |
|
(C) Fixed Cost |
(III) Explicit Costs + Implicit Costs. |
|
(D) Short period Average Cost (AC) Curve |
(IV) Does not change with increase or decrease in output. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
(A) Total Cost → (III) Explicit Costs + Implicit Costs. → Total Cost includes both explicit (actual expenditure) and implicit (opportunity) costs.
(B) Marginal Cost → (I) Change in total cost when an additional unit of output is produced. → Marginal Cost is the additional cost of producing one more unit.
(C) Fixed Cost → (IV) Does not change with increase or decrease in output. → Fixed Costs remain unchanged regardless of output level.
(D) Short period Average Cost (AC) Curve → (II) Vertical summation of Average Fixed Cost (AFC) and Average Variable Cost (AVC) curves. → In the short run, AC = AFC + AVC.