Relationship between TP, MP and AP Curves

Q.

Why is it essential to have different CPI for different categories of consumers?

Q. The minimum point of the ATC is at a higher volume of output than the minimum point of AVC curve, because _______________.

1. the AFC curve always declines as output increases
2. the AFC curve always increases as output increases
3. none of these
4. the ATC curve always increases as output increases

Q. Write True or False with a reason.
Fall in marginal product must lead to a fall in average product as well.

1. True
2. False

Q. __________ holds when a proportional increase in all inputs results in an increase in output by more than the proportion

1. Decreasing returns to scale
2. Increasing returns to scale
3. Constant returns to scale
4. None