The following diagram typically represents ............... of .............. production function.
Total cost, linear
A cost function shows how total cost varies with output. Its shape depends on the underlying production function: if the production function displays constant returns to the variable factor, every extra unit of output needs the same extra input, so cost rises by a constant amount per unit and the cost curve is a straight line.
The diagram plots cost in rupees on the vertical axis against output on the horizontal axis. The curve starts above the origin, which shows a positive cost even at zero output (the fixed cost component), and then rises as a straight line with a constant slope (a constant marginal cost). A cost curve that includes the fixed intercept and rises with output is the total cost curve, written as \(TC = a + bQ\), which is the cost counterpart of a linear production function.
A total fixed cost curve would be a horizontal line parallel to the output axis, because fixed cost does not change with output, so neither total-fixed-cost choice fits a rising line. A non-linear total cost curve would bend (the familiar inverse-S cubic shape), whereas the diagram is a straight line.
Total cost, linear option is correct.
Similar Questions
Arrange the following in descending order according to the extent of expenditure of Union Government in Budget 2023-24.
(i) Central Sector Schemes
(ii) Interest Payments
(iii) States' share of taxes and duties
(iv) Centrally sponsored schemes
What is the point elasticity when price is 12 rupees for the demand function P = 60 – 3q.
Match the following:
List I List II (a) 12th Finance Commission (i) Dr. Vijay Kelkar (b) 13th Finance Commission (ii) Dr. C. Rangarajan (c) 14th Finance Commission (iii) N. K. Singh (d) 15th Finance Commission (iv) Y. V. Reddy Codes : (a) (b) (c) (d)
Why does a firm under perfect competition continue to operate in the long run despite earning only normal/zero profits ?
When the Total Product (TP) is maximum, the Average Product (AP) is _____ and the Marginal Product (MP) is _____ .
What is the short run supply curve of a firm in a perfectly competitive market ?
According to Bergson-Samuelson social welfare function approach, social welfare is maximized when _____ .
In Chamberlin’s alternative approach, why does the excess capacity of a monopolistically competitive firm emerge ?
Which of the following term is more important in welfare economics and in designing government policy ?
To maintain price leadership, a dominant firm must ensure that _____ .
Important Questions from Mixed Topic (MH-SET)
.................... is a client server application that identifies each host on the internet with a unique user-friendly name.
Every OS has a ................ or .......... which primarily resides in the main memory of the computer to perform some of the basic functions of the OS.
(i) Kernel
(ii) Interface
(iii) Nucleus
(iv) Compiler
Codes:
Which of the following are referred to as low level language?
(i) Machine language
(ii) Assembly language
(iii) High level language
(iv) Natural language
Codes:
Match the following:
List I List II (a) New York Public Library (i) Shelv AR (b) Miami University Augmented Research Group (ii) Smart library (c) Oula University Library (iii) Wolf Walk (d) North Carolina State University (iv) Find the future Codes:
Which part of the QR code represents the encoded data?
