State whether the following ar True or False giving reasons: 1 when MR is constant and not equal to - Economics - The Theory of The Firm Under Perfect Competition

Question

State whether the following ar True or False giving reasons:
1 when MR is constant and not equal to zero then TR will always
be constant
2 As soon as Mc starts rising, AVC also starts rising
3 TP also increases whether there is increasing returns to a
factor or diminishing returns to a factor

Sruthi Kannan · Accepted Answer

1 false when MR is constant and not equal to Zero TR increases
at a constant rate
2 FAlse AVC can fall when MC is rising provided that MC curve
lies below AVC curve when MC ius rising
3 True TP increases at an increasing rate when there are
increasing returns to a factor and at a diminishing rate when there
arediminishingreturns to a factor

State whether the following ar True or False giving reasons: 1. when MR is constant and not equal to zero then TR will always be constant. 2. As soon as Mc starts rising, AVC also starts rising. 3. TP also increases whether there is increasing returns to a factor or diminishing returns to a factor.