All of the following curves are U-Shaped except:
The AVC curve
The AFC curve
The AC curve
The MC curve
Correct Answer :
B. The AFC curve
Related Questions
Consumers are likely to get a variety of similar goods under:
Monopoly
Perfect competition
Duopoly
Monopolistic competition
Under which of the following forms of the market structure does a firm have no control over the price of its product?
Monopoly
Monopolistic competition
Oligopoly
Perfect competition
The slope of indifference curve shows:
Income level
Satisfaction level
Marginal rate of substitution
Demand level
An indifference curve normally slopes downward from:
Left to right
Right to left
Both of them
None of them
A market demand curve presumes that:
All consumers are alike
Incomes of all consumers is the same
Tastes of all consumers are the same
Consumers differ in taste, incomes and other matters
The competitive equilibrium leads to:
The firms producing with excess capacity
The firms producing at their minimum costs
Firms producing at a cost higher than the minimum
Some firms producing under decreasing costs and others under increasing costs
According to translog production function, elasticity of substitution is:
Greater than one
Less than one
Zero
Equal to one
Each firm in cournot model starts selling:
1/2 of the total market demand
1/4 of the total market demand
1/3 of the total market demand
None of the above
Under pure monopoly, there will be:
No distinction between firm and industry
One firm and no industry
No firm and no industry
None of the above
Identify the factor, which generally keeps the price elasticity of demand for a commodity low:
Variety of uses for that commodity
Its low price
Close substitutes for that commodity
High proportion of the consumers income spent on it
Competitors in monopolistic competition have full control over:
The price of their product
Product quality
The shape of the market demand curve
The elasticity of product substitution
Marginal cost curve cuts the average cost curve:
At the left of its lowest point
At its lowest point
At the right of its lowest point
None of the above
According to Saint Thomas Aquinas value is determined by God, but prices by:
Consumers
Employees
People
Labor
The price consumption curve (PCC) for commodity X is the locus of points of consumer equilibrium resulting when:
The price of only Y is varied
The price of only X is varied
The prices of both Y and X are varied
None of the above
When total product falls:
MP is positive
MP is negative
MP is falling
MP is rising
Which is the first-order condition for the profit of a firm to be maximum?
AC=MR
MC=MR
MR=AR
AC=AR
Law of Variable Proportions is regarding in:
Short-Run
Long-Run
Medium-Run
None of the above
In short run:
Labor is variable
Labor is fixed
Capital is variable
None of the above
The consumer is in equilibrium at the where:
Budget line and indifference curve intersect each other
Budget line and indifference curve are tangent to each other
Budget line and indifference curve are opposite to each other
Budget line and indifference curve are parallel to each other
Economics is a:
Physical science
Social science
Natural science
Basic science
Price mechanism has also given the name:
Labor theory
Production theory
Laisseze-faire
None of the above
When the income of consumer increases then budget line will:
Get steeper
Shift parallel to right
To get flatter
To shift upward
The least cost combination of factors x , y and z will generally be the point at which:
Price of x = Price of z Price of y Price of x
MP of x = MP of y Price of x Price of x
MP of x = MP of y = MP of z Price of x Price of y Price of z
MP of x = MP of y = MP of z
If the demand for good is less elastic and government levied a tax per unit of output, the price per unit for the firm would:
Rise by the amount of the tax
Rise by more than the amount of the tax
Rise by less than the amount of the tax
Remain the same
Given a U shaped average cost curve, the relationship between average cost and marginal cost is such that marginal cost must always be:
Falling when average cost is falling
Rising when average cost is falling
Falling when average cost is rising
Rising when average cost is rising
In Bertrand model, the entry of new firms is:
banned
allowed
partially allowed
none of the above
Elasticity of demand is equal to unity while marginal revenue is:
Positive
Zero
Negative
Indeterminate
In substitution effect, we:
Move to another indifference curve
Move along given indifference curve
Move to a higher indifference curve
Move to a lower indifference curve
At high prices, demand is likely to be:
More elastic
Less elastic
Unit elastic
Perfectly inelastic
On all points of budget (price) line:
Total expenditures increases
Total expenditures decreases
Total expenditures are zero
Total expenditures remain same