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Questions › JNU › JNU SIS 2017 › Q13
2 marks, −1Microeconomics › Costs of production › Short-run cost curves and their relationshipsModerateabout 2 min

JNU SIS 2017 Question 13: Costs of production

A perfectly competitive firm produces 100 units of output. It faces a total fixed cost of ₹ 5,000. The average variable cost (AVC) of production at this output is 10. When production rises to 101, the total cost of production is ₹ 6,070. Then at this point

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Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

This question is on Short-run cost curves and their relationships, part of Costs of production in Microeconomics.

Fixed, variable, average and marginal cost, and how marginal cost relates to average cost.

TestStop has 17 past-paper questions on this subtopic; the nearest in year are below.

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Practise Costs of productionMore on Short-run cost curves and their relationships

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Question from the JNU SIS 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.