MICROECONOMICS CH : 11 THEORY OF SUPPLY — Economics STD 11 Commerce — Question

Average total cost and average variable cost are apart from each other by a constant factor.

Shut-down point occurs when a firm is just covering its fixed costs only.

Indifference curve is not convex to the origin in case of two normal goods.

Giving reasons, state whether the following statement are true or false:
When there are diminishing returns to a factor, total product always decreases.

When market price of a good is more than its equilibrium price, there is a situation of excess demand. (True/ False)

When output of Good-1 increases from 100 units to 110 units and output of Good-2 decreases from 400 units to 350 units, marginal opportunity cost = 50 units.

Average fixed cost curve is a rectangular hyperbola.

Giving reasons, state whether the following statements are true or false.
Under diminishing returns to a factor, total product continues to increase till marginal product reaches zero.

Which of the following statements are true or false?
Massive unemployment shifts the Production Possibility Curve to the left.

In a free economy, decision relating 'for whom to produce' enhances the gulf between rich and the poor.