MICROECONOMICS CH : 11 THEORY OF SUPPLY — Economics STD 11 Commerce — Question

“Returns to a variable factor operates in the long period." True or False? Give reason in support of your answer.

Feasible combinations of goods are those combinations which a consumer can always buy, no matter what his income is.

State giving reasons, whether the following statements are true or false:
The difference between Average Total Cost and Average Variable Cost is constant.

A normative statement offers suggestions or opinions.

Giving reasons, state whether the following statements are true or false:
If the supply curve is a horizontal straight line, change in demand will affect equilibrium quantity.

Fixed cost must be greater than variable cost when output is zero.

Giving reasons, state whether the following statements are true or false:
When MR falls to zero, average revenue becomes maximum.

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.
If price of substitute goods falls, demand for related goods will also fall?

Decrease in demand refers to contraction of demand.