CBSE economics
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What is the relation between Average Variable Cost and Average Total Cost, if Total Fixed Cost is zero?
The relation is defined as below,
As we know,
ATC = (TFC+ TVC)/Q
AVC= TVC/Q
If TFC = 0
Then, ATC = (0+TVC)/Q = AVC
Hence, ATC = AVC, if TFC is zero.
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A firm is able to sell any quantity of a good at a given price. The firm's marginal revenue will be:
(Choose the correct alternative):
(a) Greater than Average Revenue
(b) Less than Average Revenue
(c) Equal to Average Revenue
(d) Zero
(c) The firm's marginal revenue will be equal to average revenue as marginal revenue is net addition to the revenue when an additional unit is produced.
When does 'change in demand' take place?
Change in demand describes a change or shift in demand due to changes in other determinants of demand in addition to own price of a commodity such as:- Income of consumer, Tastes & Preferences of consumer, Price of substitute goods.
Differentiated products is a characteristic of: (Choose the correct alternative):
(a) Monopolistic competition only
(b) Oligopoly only
(c) Both monopolistic competition and oligopoly
(d) Monopoly
(c) Both monopolistic competition and oligopoly
Demand curve of a firm is perfectly elastic under:(Choose the correct alternative)
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Demand curve of a firm is perfectly elastic under Perfect competition.
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Mock Test Series
Mock Test Series