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Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Cost — Practice Worksheet
Chapter: Cost
Topic: Cost
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
The value of the next-best alternative foregone is the ____ cost.
  • A.Money
  • B.Opportunity
  • C.Fixed
  • D.Marginal
2.
Costs that do not change with output are:
  • A.Variable costs
  • B.Fixed costs
  • C.Marginal costs
  • D.Average costs
3.
Costs that change with the level of output are:
  • A.Fixed costs
  • B.Variable costs
  • C.Sunk costs
  • D.Opportunity costs
4.
Total cost equals:
  • A.TFC − TVC
  • B.TFC + TVC
  • C.TFC × TVC
  • D.TVC ÷ TFC
5.
At zero output, total cost equals:
  • A.Zero
  • B.TFC
  • C.TVC
  • D.MC
6.
Average fixed cost is:
  • A.TFC ÷ Q
  • B.TVC ÷ Q
  • C.TC ÷ Q
  • D.Change in TC
7.
As output rises, AFC:
  • A.Rises
  • B.Falls continuously
  • C.Is constant
  • D.Is U-shaped
8.
Average total cost equals:
  • A.AFC + AVC
  • B.AFC − AVC
  • C.TFC + TVC
  • D.MC × Q
9.
Marginal cost is the:
  • A.Change in total cost from one more unit
  • B.TFC ÷ Q
  • C.TC ÷ Q
  • D.Total fixed cost
10.
If TC rises from 27 to 36 when output rises from 3 to 4, MC is:
  • A.9
  • B.27
  • C.36
  • D.3
11.
The AVC curve is:
  • A.Always falling
  • B.U-shaped
  • C.Horizontal
  • D.Vertical
12.
The AFC curve is a:
  • A.Rectangular hyperbola (falling)
  • B.U-shape
  • C.Straight upward line
  • D.Vertical line
13.
The MC curve cuts the AVC and AC curves at their:
  • A.Maximum points
  • B.Minimum points
  • C.Starting points
  • D.End points
14.
The vertical gap between the AC and AVC curves equals the:
  • A.MC
  • B.AFC
  • C.TVC
  • D.TC
15.
Rent of a factory building is an example of a ____ cost.
  • A.Variable
  • B.Fixed
  • C.Marginal
  • D.Opportunity
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
A bakery pays ₹2,000 rent whether it bakes 0 or 100 loaves. This ₹2,000 is a:
  • A.Fixed cost
  • B.Variable cost
  • C.Marginal cost
  • D.Opportunity cost
17.
If TFC = ₹100 and at 10 units TVC = ₹150, then AC at 10 units is:
  • A.₹25
  • B.₹15
  • C.₹10
  • D.₹250
18.
AFC keeps falling but never reaches zero because total fixed cost:
  • A.Stays positive while being spread over more units
  • B.Rises with output
  • C.Becomes negative
  • D.Equals MC
19.
When MC is below AC, the AC curve is:
  • A.Falling
  • B.Rising
  • C.Constant
  • D.Vertical
20.
The gap between the AC and AVC curves narrows as output rises because:
  • A.AFC (the gap) keeps falling
  • B.MC rises
  • C.TVC falls
  • D.TFC rises
21.
Why are the AVC and AC curves U-shaped?
  • A.First increasing then diminishing returns make per-unit costs fall then rise
  • B.Fixed cost is zero
  • C.Prices rise then fall
  • D.Output is constant
22.
A firm shut for the day still pays its watchman and rent. These payments confirm that fixed costs:
  • A.Must be borne even at zero output
  • B.Vanish at zero output
  • C.Equal marginal cost
  • D.Are always the largest cost
23.
Using the table, the AVC is lowest (₹5) and then begins to rise around output:
  • A.2 to 3
  • B.5
  • C.1
  • D.It never rises
24.
Marginal cost is closely linked to total variable cost because MC equals the change in:
  • A.TVC (the only part of TC that changes with output)
  • B.TFC
  • C.AFC
  • D.Output price
25.
At AC's minimum point, marginal cost is:
  • A.Equal to AC
  • B.Above AC
  • C.Below AC
  • D.Zero

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) Opportunity
  2. (B) Fixed costs
  3. (B) Variable costs
  4. (B) TFC + TVC
  5. (B) TFC
  6. (A) TFC ÷ Q
  7. (B) Falls continuously
  8. (A) AFC + AVC
  9. (A) Change in total cost from one more unit
  10. (A) 9
  11. (B) U-shaped
  12. (A) Rectangular hyperbola (falling)
  13. (B) Minimum points
  14. (B) AFC
  15. (B) Fixed
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Fixed cost
  2. (A) ₹25
  3. (A) Stays positive while being spread over more units
  4. (A) Falling
  5. (A) AFC (the gap) keeps falling
  6. (A) First increasing then diminishing returns make per-unit costs fall then rise
  7. (A) Must be borne even at zero output
  8. (A) 2 to 3
  9. (A) TVC (the only part of TC that changes with output)
  10. (A) Equal to AC
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