• A concave PPC represents the law of diminishing opportunity cost.

Select one:

True

False

• Suppose that products A, B, C and D have price elasticity of demand coefficients of 0.67, 1.24, 2.01 and 0.2 respectively. A 10% rise in price would result in increased total revenue with which products?

Select one:

a.A and B.

b.A and C.

c.A and D.

d.B and C.

e.B and D.

• If the marginal product is declining, which of the following statement is correct?

Select one:

a.Average product must be falling.

b.Average total cost must be falling

c.Marginal cost must be falling.

d.Average product could be rising or falling.