Total cost of production for a firm to produce 100 units is Rs.1,500 and to produce 150 units is Rs.2000. Assuming the average variable cost to be constant, fixed cost for the firm is
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1 mark, −0.33MicroeconomicsCosts of productionDeriving cost functions and cost curvesModerateabout 1 min
UoH 2011 Question 39: Costs of production
Answer and worked solution
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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 Deriving cost functions and cost curves, part of Costs of production in Microeconomics.
Working out cost curves from a cost function, a production function or a marginal cost schedule.
TestStop has 20 past-paper questions on this subtopic; the nearest in year are below.
- IIT JAM 2022 · Q30The short-run production function is Q = 200 + 0.2L² - 0.0004L³. If the wage rate is Rs. 140 and labour L =…
- IIT JAM 2022 · Q45The Total Variable Cost is TVC = x³ - bx² and the Total Fixed Cost is 848. The value of b for which Marginal…
- GATE 2023 · Q59Consider the following short-run cost function: C(q) = 10q³-80q²+300q+50 At the minimum average variable…
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Question from the UoH 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.