MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

"Petrol is becoming cheaper, yet the demand for cars is not rising."
Does it mean that the law of demand is not operative?

Explain the relationship between the marginal product and the total product of an input.

If IC is not convex at the point of equilibrium, the consumer cannot reach the point of stable equilibrium. Comment.

Average revenue is the same as market price of the commodity. Comment.

Elasticity of demand is generally high during the long period compared to the short period. Why?

Distinguish between microeconomics and macroeconomics.
[Hint: Microeconomics studies economic relationships or economic problems or economic issues at the level of an individual-an individual firm, an individual household or an individual consumer. Macroeconomics studies economic relationships or economic problems or economic issues at the level of the economy as a whole.]

Electricity tariff is increased for the commercial use. Would it affect fixed cost or variable cost of the industry? Explain with a reason

Shut-down point means shutting down the firm. Do you agree?

Find marginal opportunity cost when shifting some resources from Use-1 to Use-2 causes a loss of output of 1,500 units in Use-1 and gain of output of 1,000 units in Use-2.

Marginal cost includes both fixed cost and variable cost. Comment.