MICROECONOMICS CH : 3 CONSUMER'S EQUILIBRIUM UTILITY ANALYSIS — Economics STD 11 Commerce — Question

In case of Giffen goods, income effect is higher than the substitution effect.

State giving reasons, whether the following statements are true or false:
As soon as Marginal Cost starts rising, Average Variable Cost also starts rising.

Equality between MR and MC is a sufficient condition for profit maximisation.

Area under MC curve = TVC.

Initially total product increases but ultimately falls when there are diminishing returns to a factor.

Giving reasons, state whether the following statement are true or false:
Increase in total product always indicates that there are increasing returns to a factor.

Giving reasons, state whether the following statements are true or false.
Total product always increases whether there is increasing returns or diminishing returns to a factor.

In a situation when import of inputs becomes expensive, equilibrium price of the commodity tends to rise.

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