Theory of consumer behaviour — Economics STD 11 Commerce — Question

Variable cost is incurred before production is started.

Giving reasons, state whether the following statements are true or false:
In a state of equilibrium, quantity demanded will be less than the quantity supplied.

Variable cost reduces as output increases

Increase in demand refers to extension of demand.

Total revenue is constant when marginal revenue is constant.

If slope of two demand curves is the same, they show the same elasticity of demand.

Giving reasons, state whether the following statement are true or false.
When total revenue is maximum and constant, marginal revenue is also maximum.

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

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

If there were no choices in resource allocation, economics would not have existed.