Economics

✅ The correct answer is D.
Hammer is a producer good. A hammer is a durable rival good.

✅ The correct answer is C.
At the point of inflexion, the marginal product is maximum. Upto the Point of Inflexion TP has been increasing at increasing rate resulting in increasing MP.

✅ The correct answer is A.
The AR curve and industry demand curve are same in case of Monopoly. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. Perfect competition produces an equilibrium in which the price and quantity of a good is economically efficient.

✅ The correct answer is A.
David Ricardo the economist had little formal education and started working in the money market at an early age of fourteen. At the age of 14 he entered into business with his father, who had made a fortune on the London Stock Exchange.

✅ The correct answer is B.
In a perfectly competitive market firm is the price taker and industry the price giver. A perfectly competitive firm would be characterized as a “price taker” due to its inability to influence market price. In a perfectly competitive market, the price of the products are fixed since each firm is producing just enough to stay in business.

✅ The correct answer is D.
Law of return applies to firms working in all kinds of market situations. A firm’s production function could exhibit different types of returns to scale in different ranges of output.

✅ The correct answer is A.
A firm earns economic profit when total profit exceeds Normal profit. Economic profit is the profitability measurement that calculates the amount that revenues received from selling a product exceeds opportunity costs incurred from using resources to make and sell these products.

✅ The correct answer is B.
TC curve does not start from origin. The shape of the total cost curve is based on short-run production returns, especially the law of diminishing marginal returns. Another observation is that the total cost curve does not go through the origin, but rather begins at a positive value on the vertical axis. This vertical intercept indicates fixed cost.

✅ The correct answer is B.
T.R.Malthus first raised the fear of a world food shortage. In 1798 Thomas Robert Malthus famously predicted that short-term gains in living standards would inevitably be undermined as human population growth outstripped food production, and thereby drive living standards back toward subsistence.

✅ The correct answer is C.
Economics is the study of how society manages its scarce resources. Resources are scarce in that we have fewer resources than we wish. Economists study how people make decisions about buying and selling, and saving and investing.