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Chapters
1: Micro and Macro Economics - An Introduction
2: Demand and Law of Demand
3: Elasticity of Demand
4: Theory of Consumer's Behaviour : Cardinal Utility Analysis
5: Theory of Consumer's Behaviour : Indifference Curve Analysis
6: Supply and Law of Supply
7: Revenue Analysis
▶ 8: Cost Theory Analysis
9: Forms of Market
10: Concept of Production and Law of Returns
11: Equilibrium of Firm and Industry Under Perfect Competition
12: Producer's Equilibrium Under Perfect Competition
13: Price Output Under Perfect Competition
14: Price Output Determination Under Monopoly
15: Price Output Determination Under Monopolistic Competition and Oligopoly
Unit 2 : Theory of Income and Employment
16: Basic Concepts of Macro Economics
17: Aggregate Demand and Supply - Determinants of Equilibrium
18: Consumption Function {Propensity to Consume)
19: Concept of Investments-Types and Determinants
20: Multiplier - I : Static and Dynamic
21: Full Employment and Voluntary Unemployment
22: Problems of Deficient Demand and Excesss Demand
23: Measures to Correct Deficient and Excess Demand
Unit 3 : Money and Banking
24: Money - An Introduction
25: Bank and Commercial Bank
26: Central Bank
Unit 4 : International Trade
27: Balance of Payments
28: Foreign Exchange Rate
Unit 5 : Public Finance
29: Fiscal Policy
30: Budget
Unit 6 ; National Income
31: National Income and Circular Flow of Income
32: Concepts of National Income
33: Measurement of National Income
34: National Income and Economic Welfare
![R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC chapter 8 - Cost Theory Analysis - Shaalaa.com](/images/economics-english-class-12-isc_6:0ec86a6424ae41d2b0d71f72fec46101.jpg "R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC chapter 8 - Cost Theory Analysis")
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Solutions for Chapter 8: Cost Theory Analysis
Below listed, you can find solutions for Chapter 8 of CISCE R. K. Lekhi and P. K. Dhar for Economics [English] Class 12 ISC.
R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC 8 Cost Theory Analysis TEST QUESTIONS [Pages 22 - 25]
SHORT ANSWER QUESTIONS
What is meant by average cost?
What is meant by variable cost?
What do you mean by fixed cost?
What is meant by total cost?
What is meant by private cost?
Explain the meaning of social cost with the help of an example.
What is explicit cost?
What is meant by implicit costs?
What is meant by money costs?
What is meant by real cost?
What is opportunity cost?
Define the opportunity cost of a factor of production.
What is meant by marginal cost?
What is meant by the break-even point?
At what point does MC curve cut AC curve?
Give a formula to determine average cost.
In which cost will the expenditure on raw material and wages of labourers be included?
What is the shape of the AC curve?
Explain the shape of the MC curve.
Distinguish between Fixed cost and Variable cost.
Explain the relationship between average cost and marginal cost with the help of an appropriate diagram.
Distinguish Between short-run and long-run.
What is meant by accounting cost?
Explain the following Concept:
Actual Costs
Explain the following Concept:
Out of Pocket Cost
Explain the following Concept:
Book Costs
Write Short note on Incremental Costs.
Explain the following:
Sunk cost
Write Short note on historical Cost.
Explain the following:
Replacement cost
What is meant by private cost?
Explain the social cost.
Explain the urgent cost.
Explain the Postponable Cost.
Explain the Escapable cost.
Explain the unavoidable cost.
Explain the controllable cost.
Explain the Non-Controllable cost.
Write a short note on direct costs.
Explain ‘Indirect cost’.
LONG ANSWER QUESTIONS
What do you mean by fixed cost?
Explain the nature and shape of the curves of total fixed costs.
Explain the nature and shape of the curves of average fixed cost.
What is opportunity cost?
Distinguish between implicit costs and explicit costs.
Distinguish between Fixed cost and Variable cost.
Discuss the importance of fixed cost and variable cost in the study of the theory of value.
Why is the short-run average cost curve (SAC) U-shaped?
Describe various types of production costs.
Explain the relationship between average cost and marginal cost with the help of an appropriate diagram.
What is meant by total cost?
What is meant by average cost?
What is meant by marginal cost?
Explain the relationship between average cost and marginal cost with the help of an appropriate diagram.
Explain the relationship between average cost and marginal cost with the help of an appropriate diagram.
What is meant by private cost?
Explain the social cost.
Write a short note on Economic cost.
Explain the social cost.
Write a short note on money costs.
What is meant by real cost?
Distinguish Between short-run and long-run.
Distinguish between implicit costs and explicit costs.
Define the following:
Average cost
Define marginal cost.
Explain the shapes of the average cost curves.
R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC 8 Cost Theory Analysis EXAMINATION CORNER [Pages 25 - 27]
Define the opportunity cost of a factor of production.
Define implicit cost.
Distinguish between implicit costs and explicit costs.
Explain the shape of the total variable cost with the help of a diagram.
The break-even Point and the shutdown point are different. How?
Define the following:
Average cost
Define marginal cost.
Explain the shapes of the average cost curves.
The cost function of a firm is given below:
| Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| Total Cost | 40 | 80 | 110 | 126 | 128 | 135 | 180 |
Find the following:
- Total fixed costs
- Total variable costs
- Average fixed costs
- Average variable costs
- Average total costs
- Marginal costs
Explain any three applications of the concept of opportunity cost.
Explain the relationship between average cost and marginal cost with the help of an appropriate diagram.
Distinguish between implicit costs and explicit costs.
Identify whether the rent for self-owned land is an implicit cost or an explicit cost. Justify your answer.
Identify whether the payment made for advertising is an implicit cost or an explicit cost. Justify your answer.
Define normal profits.
What is opportunity cost?
Give an example of opportunity cost.
Give one difference between accounting cost and opportunity cost.
What is the opportunity cost of a factor of production?
Distinguish between fixed factors and variable factors of production.
Define variable cost.
Give two examples of variable costs.
What is the shape of the TFC curve?
What is the shape of the TVC curve?
What is the shape of the AFC curve?
What is the shape of the AVC curve?
What is the shape of the AC curve?
Define marginal cost.
Draw a marginal cost curve.
Why is the short-run marginal cost curve ‘U’-shaped?
Define marginal cost.
With the help of an example, show how marginal cost can be obtained from total cost.
Define marginal revenue.
How can we get marginal revenue from total revenue?
Which concept of revenue is called ‘price’?
Explain any three applications of the concept of opportunity cost.
Why does the TC curve start from the Y-axis and TVC curve from the origin?
Draw average variable cost and average total cost curves. Do they intersect each other? Give one reason for your answer.
Define economic cost.
Explain the relationship between total cost, total fixed cost and total variable cost with the help of a diagram.
Explain the relationship between total cost, average cost and marginal cost with the help of diagrams.
Explain the shape of the total fixed cost (TFC) curve.
Explain the shape of the total variable cost with the help of a diagram.
Classify the following into fixed cost and variable cost, giving a reason for your answer:
- Expenses incurred on raw material
- Interest on capital
- Salaries to permanent employees.
Explain the shape of the MC curve.
Draw average variable cost and average total cost curves. Do they intersect each other? Give one reason for your answer.
State the differences between money cost and real cost.
Define implicit cost.
Distinguish between implicit costs and explicit costs.
Explain the shapes of total fixed cost curve and average fixed cost curve. Give one reason each to justify the shape of the two curves.
The cost function of a firm is given below:
| Output | 0 | 1 | 2 | 3 | 4 |
| Total cost | 100 | 250 | 370 | 550 | 740 |
Calculate:
- AFC
- AVC
- MC
Solutions for 8: Cost Theory Analysis
R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC chapter 8 - Cost Theory Analysis
Shaalaa.com has the CISCE Mathematics Economics [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. R. K. Lekhi and P. K. Dhar solutions for Mathematics Economics [English] Class 12 ISC CISCE 8 (Cost Theory Analysis) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
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Concepts covered in Economics [English] Class 12 ISC chapter 8 Cost Theory Analysis are Revenue Concepts, Relationship between Total, Average and Marginal Revenues under Perfect Competition, Cost of Production, Relationship between Total, Average and Marginal Revenue under Imperfect Competition, Significance of Revenue Curve, Behaviour of Cost in the Short - Run, Types of Revenue, Costs in Long Run Period, Difference Between Short - Run & Long Run Costs, Theories of Costs: Traditional Theory of Costs/Short Run Cost Curves, Relation Between Total, Average and Marginal Revenue, Relationship Between (Mutual Determination) AR, MR, and Elasticity of Demand, Comparative Study of Revenue Curves under Different Markets, Cost Concepts > Average Cost, Cost Concepts > Total Costs, Cost Concepts > Marginal Cost, Relationship between Average and Marginal Cost, Long-Run Cost Curves.
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