The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

Average cost includes both fixed cost and variable cost.

Giving reasons, state whether the following statements are true or false.
Average product will increase only when marginal product increases.
OR
Average product rises only where marginal product rises.

Giving reasons, state whether the following statements are true or false.
Increase in total product always indicates that there are increasing returns to a factor.

Giving reasons, state whether the following statements are true or false.
When there are diminishing returns to a factor, total product first increases and then starts falling.

Increase in income of the consumer is the only cause that leads to a parallel shift of budget line to the right.

When average revenue falls marginal revenue falls faster than average revenue. (True/ False)

Can Average revenue be zero.

Giving reasons, state whether the following statements are true or false:
When MR is zero, average revenue will be constant.

Giving reasons, state whether the following statements are true or false.
When the marginal product of a variable input falls, total product also falls.

Shift in demand curve does not occur so long as own price of the commodity is constant.