Production and cost — Economics STD 11 Commerce — Question

When MR falls, AR falls. (True/ False)

Giving reasons, state whether the following statement are True or False.
If there is decrease in supply, producer moves downward along the same supply curve?

Giving reasons, state whether the following Its are true or false.
With the increase in level of output, average fixed cost goes on falling till it reaches zero.

Change in quantity demanded is the explanations of law of demand. (True/ False)

Giving reasons, state whether the following statements are true or false.
In the context of an economy when we talk about ‘scarcity', we refer to short supply of land.

Giving reasons, state whether the following statements are true or false.
Under perfect competition, all the units of a good produced can be heterogeneous.

Giving reasons, state if the following statements are true or false.
An increase in the price of sugar would result in an increase in the demand for tea.

State giving reasons, whether the following statements are true or false:
When Marginal Revenue is positive and constant, Average Revenue and Total Revenue will both increase at constant rate.

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

In the long run, a firm must cover all costs of production