MICROECONOMICS CH : 9 CONCEPT OF REVENUE — Economics STD 11 Commerce — Question

In the long run, a firm must cover all costs of production

State giving reasons, whether the following statements are true or false:
Marginal Revenue is always the price at which the last unit of the commodity is sold.

Problem of resource allocation is automatically solved in a free economy (capitalist economy).

Increase in income of the consumer is the only cause that leads to a parallel shift of budget line to the right.

Contraction of supply causes a shift in supply curve.

Law of demand must fail if less of a commodity is demanded even when income of the buyer rises.

Shift in demand curve does not occur so long as own price of the commodity is constant.

Supply may remain constant even when quantity supplied changes.

Giving reasons, state whether the following statements are true or false.
Law of demand states that price and demand are positively related to each other.

Giving reasons, state whether the following statement are True or False.
When price of factor input falls, supply curve shifts rightward.