MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — Economics STD 11 Commerce — Question

An individual can shift from the consumption of a normal good to the consumption of an inferior good.

Supply may remain constant even when quantity supplied changes.

Giving reasons, state whether the following statements are true or false:
MR is always equal to the price at which the last unit of commodity is sold.

Increase in total product always follows the increase in marginal product.

Giving reasons, state whether the following statements are true or false:
If the supply curve is a vertical straight line, change in demand will not affect equilibrium price.

Lack of scarcity implies lack of economic problem.

Giving reasons, state whether the following statements are true or false.
When demand curve is Rectangular hyperbola, ED > 1.

Giving reasons, state whether the following statements are true or false.
If TU remains the same; MU may be negative or positive.

State giving reasons, whether the following statements are true or false:
Average Cost falls only when Marginal Cost falls.

Giving reasons, state whether the following statement are true or false.
A firm gets maximum profits only if difference between average revenue and average cost is the maximum.