The reasons for L shaped long run average cost curve is/are<br><img src="/images/question-image/management/managerial-economics/1700113593-m1-76.png" title="Managerial Economics mcq question image" alt="Managerial Economics mcq question image">

Indicate the correct answer from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined.
1. Long run average cost curve under normal production function
2. Long run average cost curve under linearly homogeneous production function
3. Planning curve
4. Envelope curve

A

1, 2 and 3

B

2, 3 and 4

C

1, 3 and 4

D

Both 2 and 4

The point on which the average cost is minimum in a firm short-run average cost curve will also be the minimum cost point on the firm's long run average cost curve. This is true

A

When LAC is falling

B

Never

C

Always

D

Only at that level of output when LAC is at its minimum

Marginal rate of substitution of x and y can be shown in the curve by formula
Economics mcq question image

A

$$MR{S_{xy}} = \frac{{ - \Delta y}}{{\Delta x}}$$

B

$$MR{S_{xy}} = \frac{{\Delta x}}{{\Delta y}}$$

C

$$MR{S_{xy}} = \frac{{\Delta y}}{{\Delta x}}$$

D

$$MR{S_{xy}} = \frac{{ - \Delta x}}{{\Delta y}}$$

Shifts in demand curve as shown in the figure below represents
Economics mcq question image

A

extension of demand

B

increment of demand

C

increase of demand

D

expansion of demand

The lines ABCD represents which type of a curve?
Economics mcq question image

A

Kinked curve of oligopoly

B

Price rigidity curve

C

Demand curve for duopoly

D

None of the above

In a diagram below is shown the total product curve OA of labour. For it which of the following statements is true-
Economics mcq question image

A

the MP of labour always rises

B

first rises and then falls

C

always declines

D

first falls and then rises

Consider the demand curve depicted in the following diagram-
Economics mcq question image

The elasticities of demand at prices P₁ and P₂ are different because, at these prices

A

slopes are different

B

prices are different

C

quantities are different

D

price-quantity ratios are different

Given:

The given curve is a

A

Macro-Statics

B

Macro-Dynamics

C

Comparative Statics

D

Capital Budgeting

The lines ABCD represents which type of a curve?
Managerial Economics mcq question image

A

Kinked curve of oligopoly

B

Price rigidity curve

C

Demand curve for duopoly

D

None of the above

Given:

The above curve is a:

A

Demand curve

B

Product curve

C

Price curve

D

Profit curve

The reasons for L shaped long run average cost curve is/are

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