MCQ
Choose the incorrect statement
- AWhen AC is falling, MC lies below AC.
- BWhen AC becomes constant, MC also equal to it.
- CWhen AC starts increasing, MC lies above the AC.
- ✓MC never cuts AC curve.
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| a) | $e_p=\alpha$ | Horizontal demand curve |
| b) | $e_p=0$ | Vertical demand curve |
| c) | $e_p<1$ | Rectangular hyperbola |
| d) | $e_p>1$ | Flatter demand curve |