Question

Q1.
1*g
Write (TRUE FALSE), with reason.
1) When AFC is zero, then AC and AVC curves coincide with each other.
2) The difference between TC and TVC remains constant with rise in output.
3) Payment of insurance premium is a variable cost.
4) As soon as MC start rising, AVC also start rising.
5) TFC and TC curve starts from the same point.
6) TP decreases during diminishing returns to a factor.
7) Only variable factors are used for production in the short period.
8) AC curve lies above the AVC curve.

Answer 1

Answer:

1. true
2. false
3. false
4. true
5. false