With the expansion of output, the short-run average cost curve, beyond a point, starts rising because
| A. | More production yields lower per unit price |
| B. | Average fixed cost increases sharply |
| C. | The law of variable proportions applies to short-run production |
| D. | Sales expenses become much larger |
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Option: C Explanation : Click on Discuss to view users comments. |
Total utility curve is
| A. | Concave to x-axis |
| B. | Concave or convex depending on situations |
| C. | Convex to x-axis |
| D. | Concave to y-axis |
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Option: A Explanation : Click on Discuss to view users comments. |
Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is
| A. | Zero |
| B. | Negative |
| C. | Positive |
| D. | Infinite |
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Option: D Explanation : Click on Discuss to view users comments. |
