Home

Which of the following curves is a rectangular hyperbola?

A. ATC

B. AVC

C. AFC

D. None of the above

Correct Answer : C.


Average fixed cost (AFC) is AFC= FC/Q, as production increases the value of Q increases and thus value of AFC will become smaller and smaller and get reaches near and near to X-axis but can never touch the X-axis because AFC can not become exact zero. Thus the AFC becomes the shape of rectangular hyperbola curve. It shows unitary elasticity because we know that the elasticity on points on rectangular hyperbola curve is equal to one.}

Download Objective type questions of Basics of Economics PDF

Get all objective type questions of Basics of Economics MCQ

Also checkout these categories

Chemical Bonding and Molecular Structure MCQ Pteridophyta MCQ Problems on Numbers MCQ Rearrangement Set 6 MCQ Blood Relation MCQ Geography MCQ Decision Making MCQ Civil Engineering MCQ Data Structure MCQ Fact MCQ Cause & Effect MCQ Solution MCQ

Please do not use chat terms. Example: avoid using "grt" instead of "great".

Submit
Load More..
You can do it
  1. Marginal Utility (MU) curve is always:
  2. Elasticity of Substitution (s) is defined as:
  3. Who is the author of Problems of Capital Formation in Underdeveloped Countries?
  4. In case of monopoly, TR curve rises at a:
  5. Entry of new firms into a competitive market will shift the supply curve of the:
  6. The total utility is gained by consuming:
  7. The budget constraint can be written as:
  8. Slope of a demand curve is:
  9. When total product falls:
  10. Market allocation fundamentally relies upon:
  11. In modern theory of costs, a firm normally utilizes:
  12. Efficient allocation of resources is likely to be achieved under:
  13. In microeconomics, we study:
  14. The Law of Equi-Marginal Utility refers to:
  15. The basic and essential economic problems in a community are related to choice and:
  16. Loanable funds theory of Interest was developed by:
  17. Under monopoly and imperfect competition MC is:
  18. Moving down along a linear demand curve:
  19. In case of giffin good, price effect is:
  20. Inputs or Factors of production are defined as:
  21. In income effect, we:
  22. In second degree price discrimination, monopolist takes away :
  23. Least cost combination of two factor inputs is achieved at a point where:
  24. In the case of superior (normal) commodity, the income elasticity of demand is:
  25. Any straight line supply which cuts the x-axis will have:
  26. Supply of commodity is a:
  27. The factors of production in perfect competition are:
  28. All money costs can be regarded as:
  29. A monopoly producer usually earns:
  30. When with a change in price the total outlay (expenditures) on a commodity remains constant, it is a…