In: Economics
17)True, ATC IS addition of vc and fc
And the relation between Mc and ATC
Mc is u shaped curve indicates that Mc falls in beginning then remain constant and thn rises reason operation of law of variable proportion.indicates
18)curve is 1 rising in starting then constant and thn fall
19)True.. Market is in compition only In case of perfect and monopolistic.
IN case of perfect competition market Expanding production into the zone where MR < MC reduces economic profiy Because the marginal revenue received by perfectly competition market iss equal to the price P, we can also write the profit-maximizing rule for a perfectly competitive firm as a recommendation to produce at the quantity of output where P = MC.
20)slope of total cost curve is marginal cost because of u shaped. U shaped ndicates that Mc falls in beginning then remain constant and thn rises reason operation of law of variable proportion.
21)True, consumer equilibrium is a situation under which he spend his given income on purchase of commodity in such a way that give maximum satisfaction.
Consumer equilibrium in case of single commodity