state whether the following are true aur false 1 ) when MR is constant and not equal to zero then - Economics - The Theory of The Firm Under Perfect Competition

Question

state whether the following are true aur false
1 ) when MR is constant and not equal to zero then TR will also
be constant
2 ) as soon as MC starts rising AVC also starts rising
3 ) TP always increases whether there is increasing returns or
dimnishing returns to a factor

Teena Wadhwa · Accepted Answer

(i) False When MR is constant, TR is not constant rather it is
increasing at a constant rate
(ii) False MC reaches its minimum point much earlier than AVC
So, when MC starts rising AVC is still falling
(iii) True TP increases whether there is increasing returns to
scale or decreasing returns to scale However, when there are
increasing returns to factor TP increases at an increasing rate and
when there are diminishing rate TP increases but at a decreasing
rate

state whether the following are true aur false 1.) when MR is constant and not equal to zero then TR will also be constant 2.) as soon as MC starts rising AVC also starts rising 3.) TP always increases whether there is increasing returns or dimnishing returns to a factor

state whether the following are true aur false

1.) when MR is constant and not equal to zero then TR will also be constant

2.) as soon as MC starts rising AVC also starts rising

3.) TP always increases whether there is increasing returns or dimnishing returns to a factor