MICROECONOMICS CH : 5 THEORY OF DEMAND — Economics STD 11 Commerce — Question

Giving reasons, state whether the following statement are true or false.
Can Marginal revenue be zero.

A free medicine given to the patients in a hospital is not a scarce commodity.

Giving reasons, state whether the following statements are true or false:
An increase in supply results in a fall both in equilibrium quantity and equilibrium price.

Giving reasons, state whether the following statements are true or false.
Under monopolistic competition, a firm faces a perfectly elastic demand curve.

Giving reasons, state whether the following statements are true or false.
When the quantity of a variable input is increased from 3 units to 4 units, the total output increases from 70 units to 85 units. The marginal product of the variable input is 15 units.

Total utility is maximum when marginal utility starts declining.

All attainable combinations of Good-X and Good-Y are below the budget line of a consumer.

State giving reasons, whether the following statements are true or false:As output is increased, the difference between Average Total Cost and Average Variable Cost falls and ultimately becomes zero.

It is because of the law of variable proportions that MP curve makes an inverted-U.

Fixed cost must be greater than variable cost when output is zero.