Download App

Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost2 Marks
Question
Average cost falls only when marginal cost falls.
✓

Answer

It is false. Average cost falls only when marginal cost is less then average cost. Even when MC is rising but is less than AC AC will fall.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "2 Marks Question" from Production and cost→Production and cost — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Explain the significance of 'minus sign' attached to the measure of price elasticity of demand in case of a normal good, as compared to the 'plus sign' attached to the measure of price elasticity of supply.
→
What is Marginal Rate of Transformation? Explain with the help of numerical example.
→
There is an increase in investment of ₹ 100 crore in an economy. Marginal Propensity to Consume is 1. What can you say about total increase in the income? Calculate.
→
What is a guideline?
→
Explain how increase in money supply causes inflation.
→
Explain the effect of the following on the price elasticity of demand of a commodity:
  1. Number of substitutes
  2. Nature of the commodity
→
Classify the into consumer, intermediate or capital goods.
Textile machinery.
→
Define market supply. What is the effect on the supply of a good when government imposes a tax on the production of that good? Explain.
→
What do you mean by primary deficit? Explain its implications.
→
Foreign exchange rate in India is on the rise recently. What impact is it likely to have on exports and how?
→