Download App

Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost1 Mark
Question
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.

✓

Answer

False.
Explanation:
Because as output increases, the difference between ATC and AVC falls but can never be zero. The difference is equal to AFC, which must remain positive, even when it is falling.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "True/False" from Production and cost→Production and cost — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Giving reasons, state whether the following statements are true or false.
Consumption of food grains by farmer himself is not a part of national output.
→
Giving reasons, state whether the following statements are true or false.
Under monopoly new firms can enter the industry to raise the supply.
→
Giving reasons, state whether the following statements are true or false.
Total product will increase only when marginal product increases.
→
State giving reasons, whether the following statements are true or false:
As soon as Marginal Cost starts rising, Average Variable Cost also starts rising.
→
Giving reasons, state whether the following statement are true or false:
When Marginal product falls, average product will also fall.
→
When MR falls, AR falls. (True/ False)
→
Giving reasons, state whether the following statements are true or false.
Under marginal requirement, the Reserve Bank of India gives directions to other banks to channelise credit to priority sectors.
→
Giving reasons, state whether the following statements are true or false.
Net capital gains from the sale of property is a part of domestic factor income.
→
When in order to buy 1 US dollar ₹ 65 are needed instead of ₹ 60 earlier, domestic currency shows appreciation. (True/ False)
→
Giving reason, state whether the following statement are true or false.
Unilateral transfers received from abroad will be recorded as a credit item of BOP on current account.
→