Which of the following statements are true?

(

a) Economic rent is the same as economic profit.

(

b) Imputed cost is the rent of hired building.

(

c) When AC = MC, AC is minimum.

(

d) When MC is rising AC > MC.

(

e) Output is optimum when AC = MC.

[Ans. ( a), (

c) and ( e)]

FURTHER READING Baumol, William J., Economics Theory and Operations Analysis, (Prentice-

Hall of India Pvt. Ltd., New Delhi, 1972), 3rd Edn., Chs. 9 and 10.

Bilas, RichaRd A., Microeconomic Theory, (McGraw-Hill, New York, 1971, 2nd Edn)., Chs. 6 and 7.

BRigham, EugEnE F. and JamEs L. PaPPas, Managerial Economics, (The Dryden Press, Hinsdale, Illinois., 1976), 2nd Edn., Chs. 4 and 5.

davis, R and S., chang, Principles of Managerial Economics, (Prentice-Hall, N.J., 1986), Ch. 12.

lEftWich, RichaRd H., The Price System and Resource Allocation, (The Dryden Press, Hinsdale, Illinois, 1973), Chs. 8 and 9.