Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
707 views
in Economics by (66.1k points)

Giving reasons, state wheather the following statements are true or false. 

(i) When there are diminishing returns to a factor marginal product and total product both always diminish. 

(ii) When marginal revenue is positive and constant, AR and MR will both increase at constant rate. 

(iii) As output is increased, the difference between average total cost and average variable cost falls and ultimately becomes zero.

1 Answer

0 votes
by (58.3k points)
selected by
 
Best answer

(i) False. Because MP will diminish but TP will still increase if MP is positive. 

(ii) True. Because under perfect competition AR and MR are equal, therefore both increase at a constant rate. 

(ii) False. Because difference between ATC and AVC is AFC (Average Fixed cost)

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...