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

Quantity demanded is a specific amount of a commodity that the consumer is ready to buy against a specific price, while demand is not.

Non-collusive oligopoly is that form of oligopoly in which all the firms determine price and quantity of output on the basis of cooperative behavior. (True/ False)

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.

Giving reasons, state whether the following statements are true or false.
If marginal product becomes negative, average product must also become negative.

An individual can shift from the consumption of a normal good to the consumption of an inferior good.

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.

Giving reasons, state whether the following statements are true or false:
When MR is zero, average revenue will be constant.

The distance between AC and AVC curves tends to increase at higher levels of output.

Market price is always equal to or greater than the support price of a commodity.

Supply for perishable goods is inelastic. (True/ False)