MU curve will be below X-axis when
A. | MU is zero |
B. | MU is negative |
C. | MU is positive |
D. | MU is constant |
Option: B Explanation : Click on Discuss to view users comments. |
When average product increases, the marginal product is
A. | Less than the average product |
B. | Equal to the average Product |
C. | More than the average product |
D. | None of these |
Option: A Explanation : Click on Discuss to view users comments. |
If two goods are perfect substitutes for each other, it necessarily follows that
A. | An indifference curve relating the two goods will be curvilinear |
B. | An indifference curve relating the two goods will be linear |
C. | An indifference curve relating the two goods will be divided into two segments which meet at a right angle |
D. | An indifference curve relating the two goods will be convex to the origin. |
Option: B Explanation : Click on Discuss to view users comments. |
In general, profit will be at a maximum where
A. | MC = MR |
B. | MC < MR |
C. | MC > MR |
D. | MC = MR - 1 |
Option: A Explanation : Click on Discuss to view users comments. |