PPSCFPSCNTSPakistan govt jobs
- Subject
- Average And Total Costeconomics-mcqs › average-and-total-cost
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
Explanation
When implicit costs are included, accounting profit does not account for them, so it will be higher than economic profit, which deducts both explicit and implicit costs.
More Average And Total Cost MCQs
Practice related questions from the same subject.
- 1.When a production function shows initially rising marginal product followed by diminishing marginal product as output grows, how will the marginal cost curve behave?
- 2.What happens to the average total cost when marginal cost is less than the average total cost?
- 3.Which of the following statements accurately describes cost behavior over time?
- 4.How does the slope of a production function change when it demonstrates diminishing marginal returns?
- 5.Naila runs a small pottery business producing 1,000 items annually, each sold at Rs 100. The raw materials cost her Rs 20,000 for these 1,000 pieces. She has invested Rs 100,000 in the factory and equipment, half from her own savings and half borrowed at an interest rate of 10%. (Assume she could have alternatively invested her own money elsewhere at 10% interest.) Additionally, Naila has the option to work at another pottery factory earning Rs 40,000 per year. What is the economic profit from Naila's pottery business?
- 6.Economic profit is calculated by subtracting which type of costs from total revenue?
- 7.At what output level is production most efficient by minimizing which cost?
- 8.Over the long term, if a very small factory increases its production size, what is it most likely to encounter at the start?
More in Economics Mcqs
- Aggregate Supply, Unemployment And Inflation
- Agriculture & Irrigation System of Pakistan
- Alternative Theories Of The Firm
- Application of Economics
- Applied Microeconomics
- Asymmetric Information
- Balance of Payments, Aid and Foreign Investment
- Basic of Economics
- Budget Deficits And The Trade Balance
- Capital Formation, Investment Choice, Information Technology, And Technical Progress
- Characteristics and Institutions of Developing Countries
- Comparative GDP
- Consumer Theory vs. Real Consumers
- Costs , Supply And Perfect Competition
- Development Planning and Policy-making The State, And the Market
- Economic Development in Historical Perspective
- Economic Problems of Developing Countries
- Education, Health, And Human Capital
- Elasticity
- Employment, Migration, And Urbanization
- Entrepreneurship, Organization, And Innovation
- Exchange-Rate Adjustments And The Balance of
- Exchange-Rate Determination
- Exchange-Rate Systems And Currency Crises
- Externality & Internality
- Fiscal And Monetary Policy
- Foreign Exchange
- Foundations Of Modern Trade Theory
- Global Economic Development
- Human Capital
- Income Inequality
- Industrial Development
- Inflation & Productivity
- International Factor Movements And Multinational Corporations
- Introduction To Economics
- Labour Market
- Long Term Economic Growth
- Macroeconomic Issues and Analysis
- Macroeconomic Policy Tools
- Market
- Marketing In A Global Economy
- Markets, Efficiency And The Public Interest
- Miscellaneous Economics Mcqs
- Monetary Union
- Monetary, Fiscal And Incomes Policy, And Inflation
- Money, Interest Rates And Output
- Monopoly
- Monopoly & Competition
- National Income And The Standard Of Living
- Natural Resources and the Environment Toward Sustainable Development
- Non-Tariff Trade Barriers
- Oligopoly
- Population
- Population And Development
- Poverty, Malnutrition, And Income Inequality
- Prices, Wages & Taxes
- Production Factors
- Profit Maximizing Under Perfect Competition And Monopoly
- Public Goods
- Regional Trading Arrangements
- Risks And Diversification & Efficient Market Hypothesis
- Roots of Modern Macroeconomics
- Rural Poverty and Agricultural Transformation
- Sources of Comparative Advantage
- Stabilization, Adjustment, Reform and Privatization
- Stocks
- Supply and Demand
- Supply-Side Policies
- Surplus
- Tariffs
- Taxation
- The Aggregate Demand Aggregate Supply Model
- The Balance of Payments
- The External Debt and Financial Crises
- The International Economy And Globalization
- The Meaning and Measurement of Economic Development
- The National Economy
- The Phillips Curve
- Theories of Economic Development
- Trade Policies For the Developing Nations
- Trade Regulations And Industrial Policies
- World Economy (Miscellaneous)