Economics

✅ The correct answer is A.
As output increases when MC curve initially falls and then rises. The Marginal Cost curve is U shaped because initially when a firm increases its output, total costs, as well as variable costs, start to increase at a diminishing rate. Then as output rises, the marginal cost increases.

✅ The correct answer is C.
The Making of Index numbers is the work of Irving Fisher. Index numbers played an important role in his monetary theory, and his book The Making of Index Numbers has remained influential down to the present day. Fisher’s main intellectual rival was the Swedish economist Knut Wicksell.

✅ The correct answer is B.
The total area under the demand curve of good measures total utility. The demand curve itself shows the utility each consumer will get from buying the good, and the price paid is the cost for getting that utility.

✅ The correct answer is B.
In long-run, all firms in monopolistic competition earn normal profits. In the long‐run, the competition brought about by the entry of new firms will cause each firm in a monopolistically competitive market to earn normal profits, just like a perfectly competitive firm.

✅ The correct answer is B.
The shape of rectangular hyperbola is made by AFC. The AFC curve is a rectangular hyperbola in the sense that all rectangles formed by AFC are of equal sizes.

✅ The correct answer is B.
Every factor of production gets rewarded equal to its Marginal product. No single firm can influence the market price of a factor of production. Therefore, in order to get the equilibrium position, a firm will employ labourers up to a point where their respective marginal revenue productivity is equal to their wage rate.

✅ The correct answer is D.
At shut down point Price is equal to AVC, Total revenue is equal to TVC and Total loss of the firm is equal to TFC.

✅ The correct answer is A.
Normal profit is Part of total cost. Normal profit is an economic term that describes when a company’s total revenues are equal to its total costs in a perfectly competitive market.

✅ The correct answer is B.
“Rent is a creation of value, not of wealth”. David Ricardo made this observation.

✅ The correct answer is B.
The term ‘marginal’ in economics means Additional. In economics, the term marginal is used to indicate the change in some benefit or cost. when an additional unit is produced. For instance, the marginal revenue is the change in. total revenue when an additional unit is produced.