Chapter 5 of 11
Revision Notes
Cost of Production and Concepts of Revenue — Revision Notes
Gujarat Board · Class 11 · Economics
Cost of Production and Concepts of Revenue revision notes for Gujarat Board Class 11 Economics: 4 topics in quick points.
43 questions22 flashcards5 concepts
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Key Topics to Revise
1
Various Concepts of Cost
- Cost of production refers to all expenditure incurred by a firm to produce goods and services
- Real cost includes psychological and physical burden faced by factors of production (fatigue, boredom, anxiety)
- Real cost is non-monetary and difficult to measure in rupees
2
Short Run and Long Run
- Short run is a period where some factors of production are fixed (plant, machinery, building)
- In short run, production can be changed by varying variable factors only (labor, raw materials)
- Long run is a period where all factors of production are variable
3
Classification of Production Costs
- Fixed costs remain constant regardless of production level (rent, insurance, permanent staff salary)
- Fixed costs are also called overhead costs or supplementary costs
- Variable costs change with the level of production (raw materials, labor wages, electricity)
4
Relationship between Average Cost and Marginal Cost
- When MC < AC, the AC curve is falling
- When MC = AC, the AC curve is at its minimum point
- When MC > AC, the AC curve is rising
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Full NotesKey Concepts
The psychological and physical burden borneThe cost of the next bestThe actual money expenditure incurred byCosts that remain constant regardlessCosts that change directly with
Frequently Asked Questions
What are the important topics in Cost of Production and Concepts of Revenue for Gujarat Board Class 11 Economics?
Key topics in Cost of Production and Concepts of Revenue include Various Concepts of Cost, Short Run and Long Run, Classification of Production Costs, Relationship between Average Cost and Marginal Cost. Study these first, then practise questions on each for Class 11 exams.
How should I revise Cost of Production and Concepts of Revenue for Class 11 exams?
Learn the core ideas first, then work through the 43 practice questions on Cost of Production and Concepts of Revenue. Revise definitions regularly and use flashcards for quick recall before the exam.
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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