The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

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.

Individual demand is a concept related to microeconomics, while market demand is a concept related to macroeconomics.

Changes in income cause a shift in demand curve, while change in own price of the commodity does not.

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

Which of the following statements are true or false?
An economy always produces on but not inside the Production Possibility Curve.

Giving reasons, state whether the following statement are true or false.
A producer is in equilibrium when total cost and total revenue are equal.

Giving reasons, state whether the following Its are true or false.
Total Cost rises only when marginal cost rises.

Decrease in demand refers to contraction of demand.

It is quantity demanded (and not demand for a commodity) that changes with respect to its own price.

Diminishing returns to a variable factor occur because the producer fails to buy the variable factor in the required quantity.