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

Giving reasons, state whether the following Its are true or false.
As output is increased, the difference between average total cost and average variable cost falls and ultimately becomes zero.

Microeconomics studies the theory of firm. (True/ False)

Which of the following statements are true or false? Give reason.
An economy cannot operate on any point outside the curve.

Variable cost is incurred before production is started.

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.

Which of the following statements are true or false? Give reason.
Massive unemployment shifts the PP curve to the left.

Giving reasons, state whether the following statements are true or false:
In a state of equilibrium, quantity demanded will be less than the quantity supplied.

When MP is declining, TP must also decline.

Negative MU denotes more satisfaction. (True/ False)

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