Economics

✅ The correct answer is A.
A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is Equal to 1.

✅ The correct answer is B.
The short run Requires that at least one input is fixed. The short run is a concept that states that, within a certain period in the future, at least one input is fixed while others are variable.

✅ The correct answer is C.
Unit cost is another name for ATC. Average total cost (ATC): the per-unit cost of output.

✅ The correct answer is B.
Unemployment due to mechanization of agriculture is Structural. Due to structural changes in the economy, structural unemployment may take place. Structural unemployment is caused by a decline in demand for production in a particular industry, and consequent disinvestment and reduction in its manpower requirements.

✅ The correct answer is C.
Passive factor of production is both Land & Capital.

✅ The correct answer is B.
Total costs (TC) = FC + TVC. Average Fixed Costs (AFC) = FC/Q.
TC = 400+1000 = 1400.
AFC = 1400/5 = 280.

✅ The correct answer is A.
Profits are Residual payment. Residual payments are most often associated with the entertainment industry, since movies and music can generate revenues long after they are originally released.

✅ The correct answer is B.
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is Infinite. The horizontal supply curve shows another extreme case, i.e., that of perfectly inelastic supply. The implication of such a supply curve is that a little price cut will cause the quantity supplied to fall to zero while a slightest increase in price will induce purchasers to offer an infinitely large quantity.

✅ The correct answer is C.
If a firm’s average variable cost curve is rising, its marginal cost curve must be above the average variable cost curve. If average costs are falling then marginal costs must be less than average while if average costs are rising then marginal must be more than average. Marginal cost on its way up must cut the cost curve at its minimum point. If Marginal Cost is less than Average Variable Cost, then Average Cost goes down.

✅ The correct answer is A.
A market structure in which many firms sell products that are similar but not identical is known as Monopolistic competition. Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.