Prime cost is equal to
(a) Variable cost plus administrative cost
(b) Variable cost plus fixed costs
(c) Variable cost only
(d) Fixed cost only
An expenditure that has been made and cannot be recovered is called
(a) Variable cost
(b) Opportunity cost
(c) Sunk cost
(d) Operational cost
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Which of the following cost curve is never ‘U’ shaped?
(a) Marginal cost curve
(b) Average variable cost curve
(c) Average fixed cost curve
(d) Average cost curve
The addition to total cost by producing an additional unit of output by a firm is called
(a) Variable cost
(b) Average cost
(c) Marginal cost
(d) Opportunity cost
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