Question
Among normal cost curves which one of the following curve does not have a minimum point?
The correct answer is
Average fixed cost
For positive fixed cost F and output q, AFC = F/q. It falls continuously as output increases and approaches zero without reaching a finite-output minimum.
Was this answer helpful?
Important Questions from Microeconomics
- Match the following List-I with List-II :Choose the correct option :
LIST-I LIST-II 1. Absolute Advantage a. Paul Rosenstein Rodan 2. Theory of Big Push b. Adam Smith 3. Theory of low level Equilibrium trap c. Richard R. Nelson 4. Balanced Growth Theory d. Ragner Nurkse - Managerial Economics is essentially __________ in the field of business management.
- Kumar used to eat 30 samosas in a month when the price of each samosa was ₹12. When the price of samosa increased to ₹15 per piece, he eats only 20 samosas a month. What is the price elasticity of demand for samosa by Kumar?
- Mobile phone operators market in India is an example of
- According to the Law of Diminishing Returns, in a production function when more and more units of the variable factor are used, holding the quantities of a fixed factor constant, a point is reached beyond which
Need Expert Advice?
