Economics - Study Mode

[#1061] The average profit is the difference between
Correct Answer

(C) AC and AR

Explanation

Solution: The average profit is the difference between AC and AR.

[#1062] At the point of inflexion, the marginal product is
Correct Answer

(C) Maximum

Explanation

Solution: At the point of inflexion, the marginal product is maximum. Upto the Point of Inflexion TP has been increasing at increasing rate resulting in increasing MP.

[#1063] Marginal revenue will be negative if elasticity of demand is
Correct Answer

(A) Less than unity

Explanation

Solution: Marginal revenue will be negative if elasticity of demand is less than unity. At a quantity greater than ON price elasticity on the demand curve, curve is less than one and the marginal revenue is negative.

[#1064] If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of
Correct Answer

(B) Greater than Zero but less than One

Explanation

Solution: If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of Greater than Zero but less than One.

[#1065] If the marginal (additional) opportunity cost is a constant then the PPC would be
Correct Answer

(A) Straight line

Explanation

Solution: If the marginal (additional) opportunity cost is a constant then the PPC would be Straight line. Ppc constant means goods are perfect substitute if they are perfect substitute then that curve is a straight line