State whther the following are true/false. Give reasons.
(i) When total revenue is constant average revenue will also be constant.
(ii) Average variable cost can fall even when marginal cost rising.
(iii) When marginal product falls, Average revenue product will also fall.
(iv) Average revenue is also called price.
(v) Average revenue curve is also caled Demand curve.
(vi) If total cost curve is parallel to x-axis then marginal cost will be zero.
(i) no,,,coz average revenue is falling when total revenue is constant.
(ii) yes,, AVC can fall even when marginal cost is rising coz MC cuts AVC at its minimum point.
(iii) no,,this is not necessary coz average product tends to rise until it is equal to marginal product in second stage of production...while MP starts falling....
(iv) yes
(v) yes
(vi) no