CHAPTER 3 ( UNIT 2) is the expenditure on producing a commodity

Question 1

explicit cost
( CAN ALSO BE CALLED AS AN ACCOUNTING COST AND OUTLAY COST)

Answer 1

Explicit cost = Jo bhi kharcha tum business mein directly pay karte ho — rent, salary, raw material, electricity bill, etc.

Question 2

implicit cost
( TYPE OF OPPORTUNITY COST)

Answer 2

Implicit cost = Khud ke resources ka use karke jo fayda tum chhod dete ho (jaise apni building, apna paisa, apna kaam).

Question 2

ECONOMIC COST
( kitne mei maal bika)

Answer 2

= EXPLICIT COST+ IMPLICIT COST

Question 2

NORMAL PROFIT KISME INCLUDE HOTA HAI

Answer 2

IMPLICIT COST

Question 3

TOTAL REVENUE> ECONOMIC COST
TOTAL REVENUE< ECONOMIC COST
TOTAL REVENUE = ECONOMIC COST

Answer 3

SUPERNORMAL PROFIT
ECONOMIC LOSS
NORMAL PROFIT

Question 3

INCREAMENTAL COST ( MARGINAL COST)

Answer 3

“Woh extra cost jo tab aati hai jab tum production badhaate ho ya koi naye decision lete ho.”
Incremental Cost = Extra output ke liye jo extra kharcha lagta hai.

Question 4

SUNK COST

Answer 4

“Woh kharcha jo ho chuka hai aur ab chaahe tum business band karo ya chalao, wo paisa waapas nahi aayega.”
Sunk Cost = Past ka kharcha jo recover nahi ho sakta, chaahe future decision kuch bhi ho. cannot be revised or reversed
EX- ADVERTISMENT,RESEARCH AND DEVELOPMENT

Question 5

HISTORICAL COST

Answer 5

“Woh cost jiske daam pe tumne asset ya cheez ko pehle kharida tha.”
the amount required to buy productive assets like ACHINERY,PLANT ETC for the first time
“Woh cost jiske daam pe tumne asset ya cheez ko pehle kharida tha.”

Question 5

REPLACEMENT COST

Answer 5

“Agar tumhe wahi asset aaj dobara kharidni pade, toh kitna paisa lagega.”
Replacement Cost = Kisi asset ko aaj dobara kharidne ka current price.

wo asset ko bechke jo nayi aari hai usme extra kitna daalna padra hai

Question 6

PRIVATE COST both (explicit and implicit)

Answer 6

PRIVATE COST CAN ALSO BE CALLED AS ECONOMIC COST
( WO COST JO EK FIRM JO ACTUALLY MEI INCURRED HUE HAI)

Question 7

SOCIAL COST

Answer 7

PRIVATE COST + EXTERNAL COST ( to the society)
EX- pollution wala steel factory etc
“Woh total cost jo private cost ke saath-saath dusron ko hone wale nuksaan ko bhi include karti hai.”

Question 7

FIXED COST

Answer 7

PRODUCTION KARO YAA NAA KARO WO INCURRED HOGA HI
EX- RENT, DEPRICIATION AND int on LOAN IF TAKKEN

Question 8

VARIABLE COST

Answer 8

VARIABLE COST WO COST JO OUTPUT KO BADAL DE
IF OUTPUT BADHANA HAI TO VARIABLE COST BHI BHADEGA

Question 9

TOTAL COST =

Answer 9

TOTAL FIXED COST + TOTAL VARIABLE COST

Question 10

MARGINAL COST CURVE CUTS AC AND AVC AT THEIR

Answer 10

MINIMUM

Question 10

INTERNAL ECONOMIES
EXTERNAL ECONOMIES

Answer 10

Internal economies = company ke khud ke grow hone se cost kam hoti hai.
External economies = industry ya area ke grow hone se cost kam hoti hai.