MCQ Questions Class 11 Production and Costs With Answers

CBSE Class 11 Production and Costs Multiple Choice Questions with Answers. MCQ Questions Class 11 Production and Costs with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 11 Production and Costs with Answers to know their preparation level.

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MCQ Questions Class 11 Production and Costs with Answers - Set - 2

Question 1:

The alternative name of opportunity cost is:
(a) Economic Cost
(b) Equilibrium Price
(c) Marginal Cost
(d) Average Cost

Check Answer

Correct Answer – (A)

Question 2:

Changes in production quantity affect:
(a) Both Fixed and Variable Cost
(b) Only Variable Cost
(c) Only Fixed Cost
(d) None of the above

Check Answer

Correct Answer – (B)

Question 3:

Which of the following is not fixed cost ?
(a) Insurance Premium
(b) Interest
(c) Cost of Raw Material
(d) Rent of the Factory

Check Answer

Correct Answer – (C)

Question 4:

If all the factors of production are increased by same proportion and as a result output increases by a greater proportion than it is called :
(a) Constant returns to scale
(b) Decreasing returns to scale
(d) All of these
(d) None of these

Check Answer

Correct Answer – (D)

Question 5:

Law of variable proportion is related to :
(a) Both short-run and long run
(b) Long-run
(c) Short-run
(d) Very Long-run

Check Answer

Correct Answer – (C)

MCQ Questions Class 11 Production and Costs With Answers

Question 6:

What happens when production is shut down ?
(a) Fixed Cost Increases
(b) Variable Costs Decline
(c) Variable Costs become zero
(d) Fixed Costs become zero

Check Answer

Correct Answer – (C)

Question 7:

With the increase in production the difference between total cost and total fixed cost:
(a) Remains Constant
(b) Increases
(c) Decreases
(d) Both Increases or Decreases

Check Answer