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Complete the following table: Output unitsAverage fixed cost (Rs)Marginal cost (Rs)Average variable cost (Rs)Average cost (Rs)16020−−2−−19−320−18−4−18−−512−−31 OR State whether the following statements are true or false. Give reasons for your answer: a. Under diminishing returns to a factor marginal product and total product both increase at a diminishing rate. b. When marginal cost rises, average cost also rises. c. Marginal revenue can never be negative. |
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Answer» Complete the following table: Output unitsAverage fixed cost (Rs)Marginal cost (Rs)Average variable cost (Rs)Average cost (Rs)16020−−2−−19−320−18−4−18−−512−−31 OR State whether the following statements are true or false. Give reasons for your answer: a. Under diminishing returns to a factor marginal product and total product both increase at a diminishing rate. b. When marginal cost rises, average cost also rises. c. Marginal revenue can never be negative. |
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