MICROECONOMICS CH : 12 FORMS OF MARKET: PERFECT COMPETITION — Economics STD 11 Commerce — Question

MC and AC are equal when AC tends to stabilise.

In response to constant and positive marginal revenue, both total revenue and average revenue tend to rise at a constant rate.

Average cost includes both fixed cost and variable cost.

Following a cut in the level of output, the difference between average total cost and average variable cost decreases.

MR tends to fall even when AR is constant.

Total utility starts diminishing when marginal utility begins to diminish.

Giving reasons, state whether the following statements are true or false.
If price of substitute goods falls, demand for related goods will also fall?

There are no selling costs in perfect competition.

Which of the following statements are true or false? Give reason.
Microeconomics is the study of the behaviour of the economy as a whole.