MICROECONOMICS CH : 13 MARKET EQUILIBRIUM UNDER PERFECT COMPETITION AND EFFECTS OF SHIFTS IN DEMAND AND SUPPLY — Economics STD 11 Commerce — Question

Average variable cost tends to fall, stabilise and rise as output increases.

The demand of a commodity becomes elastic if its substitute good is available in the market. (True/ False)

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.

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.

State giving reasons, whether the following statements are true or false:
When Marginal Product falls, Average Product will also fall?

If MR > MC, it is always a better situation than if MR = MC for profits to be maximised.

Giving reasons, state whether the following statements are true or false.
If TU remains the same; MU may be negative or positive.

The demand for a commodity always increases with increase in the prices of other goods. True or false?

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

All points on the budget line give equal satisfaction to the consumer.