The MC curve reaches its minimum point before the AVC curve and the AC curve. In addition the MC curve intersects the AVC curve and the AC curve at their lowest point. The above statements are both true
A. | Always |
B. | Often |
C. | Never |
D. | Sometimes |
Option: A Explanation : Click on Discuss to view users comments. |
If cross-elasticity of one commodity for another turns out to be zero, it means they are
A. | Good complements |
B. | Close substitutes |
C. | Completely unrelated |
D. | None of these |
Option: C Explanation : Click on Discuss to view users comments. |
The case of a right angled indifference curve occurs when
A. | The two goods are perfect complement |
B. | The two goods are normal |
C. | The two goods are inferior |
D. | The two goods are perfect substitutes |
Option: A Explanation : Click on Discuss to view users comments. |