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The point on which the average cost is minimum in a firm short-run average cost curve will also be the minimum cost point on the firm's long run average cost curve. This is true

Correct Answer: Only at that level of output when LAC is at its minimum

Indicate the correct answer from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined.
1. Long run average cost curve under normal production function
2. Long run average cost curve under linearly homogeneous production function
3. Planning curve
4. Envelope curve

Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer

The marginal cost is equal is to marginal revenue, the average cost is equal to average revenue, average revenue is equal to marginal revenue, and the average cost is equal to marginal cost. This is the condition of
1. Long-period equilibrium for a firm under monopoly.
2. Short-period equilibrium for a firm under oligopoly.
3. Long-period equilibrium
4. Long-period equilibrium for a firm under perfect competition.

From an alloy, two specimens are machined and tested separately under tension and compression. The engineering stress-strain curves as well as the true stress-true strain curves for tension and compression are plotted in the same diagram. Identify the correct statements:
P. The engineering stress-strain curves in tension and compression are identical.
Q. The true stress-true strain curve in compression is lower than the true stresstrue strain curve in tension due to Bauschinger effect.
R. The true stress-true strain curve in tension is above the corresponding engineering stress-strain, curve.
S. The true stress-true strain curve in tension and compression are identical.

Assertion (A) All firms under perfect competition in long run earn only normal profit.
Reason (R) All firms under perfect competition in long run operate at the minimum average cost level.

Short run marginal cost curve cuts the short run average cost curve from _______ at the minimum point of short run average cost.

Assertion (A) In long run under perfect competition, all firms invariably get only normal profit.
Reason (R) All firms incur minimum average cost and incur no selling cost due to absence of product differentiation.

Study the following information and answer the questions. Point A is 8m to the west of Point B. Point C is 4m to the south of Point B. Point D is 4m to the east of Point C. Point F is 6m to the north of Point D. Point E is 8m to the west of Point F. Point G is 2m to the south of Point E. How far and in which direction is Point G from Point A?

Assertion (A): Long run equilibrium of the industry in a perfectly competitive market occurs at the point where price equals minimum long run average cost.
Reason (R): In this position of zero economic profit, there is no tendency on the part of any existing firm to stage an exit, and no potential entrant wants to enter the industry.

Study the following information and answer the questions. Point A is 8m to the west of Point B. Point C is 4m to the south of Point B. Point D is 4m to the east of Point C. Point F is 6m to the north of Point D. Point E is 8m to the west of Point F. Point G is 2m to the south of Point E. If point G is 4m to the north of Point H, then what is the distance between H and D?