Supply Curve

Q.

Which curve is called the planning curve of a firm ?

1. TFC

2. SAC

3. LAC

4. TC

Q.

A) What are the difficulties in the construction of the consumer price index?

B) An enquiry into the budgets of middle class families in a certain city gave the following information:

$\begin{array}{cccccc}\text{Expenses on}& \text{Food}& \text{Fuel}& \text{Clothing}& \text{Rent}& \text{Other}\\ & 30\%& 10\%& 20\%& 15\%& 20\%\\ \text{Price in 2004 (Rs)}& 1500& 250& 750& 300& 400\\ \text{Price in 1995 (Rs)}& 1400& 200& 500& 200& 250\end{array}$

What is the cost of living index of 2004 as compared to 1995?

Q.
A horizontal straight line demand curve shows zero elasticity of demand.

1. True
2. False

Q. A firm under monopolistic competition in long run equilibrium is ____________.

1. at the minimum point of the long run AC curve
2. at the falling segment of the long run AC curve
3. at the rising segment of the long run AC curve
4. none of the above

Q.

A) What are the difficulties in the construction of the consumer price index?

B) An enquiry into the budgets of middle class families in a certain city gave the following information:

$\begin{array}{cccccc}\text{Expenses on}& \text{Food}& \text{Fuel}& \text{Clothing}& \text{Rent}& \text{Other}\\ & 30\%& 10\%& 20\%& 15\%& 20\%\\ \text{Price in 2004 (Rs)}& 1500& 250& 750& 300& 400\\ \text{Price in 1995 (Rs)}& 1400& 200& 500& 200& 250\end{array}$

What is the cost of living index of 2004 as compared to 1995?

Q. A firm is in equilibrium when its _________.

1. marginal cost equals the marginal revenue
2. total cost is minimum
3. average revenue and marginal revenue are equal
4. total revenue is maximum