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16. The lowest point of the TC curve is
The same as the lowest point of the AVC curve
The right of the lowest point of the AVC curve
The left of the lowest point of the AVC curve
None of these
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17. Any straight-line supply curve which cuts the X-axis will have
An elasticity less than one but not zero
Unitary elasticity of supply
An elasticity greater than one
Zero elasticity of supply
18. When the law of diminishing returns begins to operate the TVC curve begins to
Fall at a decreasing rate
Rise at a decreasing rate
Fall at an increasing rate
Rise at an increasing rate
19. MC is given by
The slope of the TC curve but not by slope of the TVC curve
The slope of the TVC curve but not by slope of the TC curve
The slope of the TFC curve
Either the slope of the TVC curve or slope of the TC curve
20. In short-run, a firm would remain in business as long as which one of the following costs are covered?
Fixed costs
Total costs
Variable costs
Constant costs
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