MICROECONOMICS CH : 7 PRODUCTION FUNTION AND RETURNS TO A FACTOR — Economics STD 11 Commerce — Question

Giving reasons, state whether the following statements are true or false.
If marginal product falls, average product must also fall.

State giving reasons, whether the following statements are true or false:
Average Cost falls only when Marginal Cost falls.

Which of the following statements are true or false?
An economy cannot operate on any point outside the Production Possibility Curve.

Supply curve slopes downwards from the right to the left. (True/ False)

If consumers tend to buy more corresponding to the existing price of the commodity, supply curve should shift to the right.

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

Total product must increase no matter there are increasing or diminishing returns to a factor.

Giving reasons, state whether the following statements are true or false:
If the increase in demand is proportionately equal to the decrease in supply, equilibrium price will rise.

If AP is falling, MP must also fall.

If price elasticity of demand is zero, it means expenditure on the commodity does not change with change in price of the commodity.