The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost?
A). Cost of cloth
B). Piece wages paid to workers
C). Depreciation on machines owing to time
D). Cost of electricity for running machines
The total effect of a price change of a commodity is
A). Sustitution effect plus price effect
B). Substitution effect plus income effect
C). Substitution effect plus demonstration effect
D). Substitution effect minus income effect
In monopoly, the relationship between average and marginal revenue curves is as follows
A). AR curve lies above the MR curve
B). AR curve coincides with the MR curve
C). AR curve lies below the MR curve
D). AR curve is parallel to the MR curve
When the perfectly competitive firm and industry are in long run equilibrium, then
A). P = MR = SAC = LAC
B). D = MR = SMC = LMC
C). P = MR = Lowest point on the LAC curve
D). All of the above
In a typical demand schedule, quantity demanded
A). Varies directly with price
B). Varies proportionately with price
C). Varies inversely with price
D). Is independent of price