Question
Does TC always shoot from Y-axis?
✓
Answer
No. TC shoots from the Y-axis only when we are referring to the short period and are therefore, distinguishing between fixed costs and variable costs. In the long period, all costs are variable costs. Accordingly, in the long period TC shoots from the origin.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
How are decisions taken by consumers and producers in a market co-ordinated?
If $7\%$ increase in $P_x $ causes $7\%$ increase in expenditure on Good$-X$, elasticity of demand $= 1$. Comment
→What happens if the firm increases its output even when $M R=M C$ ?
→Utility Analysis studies consumer's equilibrium on the assumption that utility can be expressed in terms of units like 2, 4, 6. Indifference Curve Analysis, on the other hand, assumes that utility cannot be expressed in terms of units; it can at best be compared. Does it mean that consumer's equilibrium (in terms of the consumption of goods X and Y) should be different, using different assumptions?
What do you mean by economising the use of resources?
How will a consumer adjust his consumption of goods X and Y in a situation when $MRS _{X Y}<\frac{ P _X}{ P _Y}$ ?
→
Identify the curve (TR/AR) given in the above diagram. Also, explain the nature of the curve identified by you under perfect competition.
ATC must fall simply because AFC always falls. Comment.
A firm is facing a downward sloping price line (AR curve). Why should it produce more when it must lead to fall in price of the commodity?
Analyse the impact of (i) increase in consumer's income and (ii) increase in number of consumers on market equilibrium. Use a suitable diagram in support of your answer.