Q3.

Consider the following statements about the Average Fixed Cost of a firm:

(i) Its slope is always negative.

(ii) Its slope is always greater than one.

(iii) Its slope is always equal to one.

(iv) Elasticity with respect to output is equal to one.

Choose the correct answer from the code given below :

Q4.

The presumption that costly new knowledge would be undersupplied by the private sector is based on the essential characteristic of new knowledge.

It is (A)_________ and (B)_______.

Q5.

If for the constant elasticity of substitution production function, the value of the substitution parameter (ρ) is = -1, the elasticity of substitution will be