Assertion (A): When there is an evidence of a linear relationship between two variables, it may not always mean an independent-dependent relationship between the two variables. Reason (R): The causal relationship between the two variables may not imply a reasonable theoretical relationship between the two.
Assertion (A): In the case of short run cost behavior, MC curve intersects AC curve at its minimum Reason (R): While Ac continues to decrease, MC begins to rise. Also, when AC is at its minium, it is neither increasing nor decreasing. It is constant when AC is constant, it is equal to MC at […]
Statement I : On every point on the straight line demand curve, the point elasticities are all equal Statement II : On every point on the rectangular hyperbola shaped demand curve, the point elasticities are not equal Select the correct option for those below:
a. In the short – run, ΔTFC = 0, therefore ΔTC = ΔTVC b. If decrease in AFC < increase in AVC, then AC decreases c. If decrease in AFC = increase in AVC, AC remains constant d. If decrease in AFC > increase in AVC, then AC increases