MICROECONOMICS CH : 9 CONCEPT OF REVENUE — Economics STD 11 Commerce — Question

In a state of perfect competition, commodity price should not exceed MC in case profits are to be maximised.

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

Giving reasons, state whether the following statements are true or false.
A ‘Production Possibility Frontier' (PPF) is always represented as a upward sloping curve.

Price of the product never changes under perfect competition.

Giving reasons, state whether the following statements are true or false:
When TR is constant, AR will also be constant.

Total utility will increase even when marginal utility decreases.

Average cost includes both fixed cost and variable cost.

State giving reasons, whether the following statements are true or false:
The difference between Total Cost and Total Variable Cost falls with increase in output.

Giving reasons, state whether the following statements are true or false.
Under monopolistic competition there is only one seller of the product.

Giving reasons, state whether the following statement are true or false.
When marginal revenue is zero, average revenue will be constant.