Match List I with List II

LIST I

(Production Cost)

LIST II

(Underlying Meaning)

A.

Implicit Costs

I.

Change in the total cost per unit change in output.

B.

Marginal cost

II

Total increase in costs resulting from the implementation of a particular managerial decision.

C.

Incremental Cost

III.

Inputed value of inputs owned and used by the firm.

D.

Sunk Cost

IV.

The costs that are not affected by managerial decision.


Choose the correct answer from the options given below: 

1
A - III, B - II, C - IV, D - I
2
A - IV, B - III, C - II, D - I
3
A - III, B - I, C - II, D - IV
4
A - II, B - I, C - IV, D - III

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