Advertisements
Advertisements
Question
Which one of the following is NOT a ceteris paribus assumption of the Law of Supply?
Options
Indirect taxes and subsidies on the firm's products remain constant.
Technology used by the firm in production remains constant.
Prices of the factors of production paid by the firm remain constant.
Price of the commodity produced by the firm remains constant.
Advertisements
Solution
Price of the commodity produced by the firm remains constant.
Explanation:
The Law of Supply states- Ceteris Paribus, which indicates that factors other than price remain constant and that there is a direct relationship between commodity price and supply. As a result, the firm's commodity price cannot remain constant.
APPEARS IN
RELATED QUESTIONS
State the different phases of change in the total product according to the Law of Variable Proportions. Use diagram
What are the different phases in the Law of Variable Proportions in terms of Total Product ? Give reasons behind each phase. Use diagram.
Formula for calculating AP is
The short-run production is studied through
Mention the economies reaped from inside the firm
Product obtained from additional factors of production is termed as
Modern economists have propounded the law of
Define Marginal Product of a factor.
When the Marginal Product turns negative, Total Product will ______.
Why is the AVC curve U-shaped?
At the point of inflexion, ______ is maximum.
What are Average product?
What is marginal product?
Which term describes the extra output from adding one more unit of labour in production?
What happens to marginal product after a certain point, if more and more labour is added to fixed land?
Which stage is shown when total production drops and marginal product becomes negative?
Why should businesses study the law of variable proportions?
