In the context of cost curves, when Marginal Cost is less than Average Cost: MCQ with Answer and Explanation

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In the context of cost curves, when Marginal Cost is less than Average Cost:

A. Average Cost is falling

B. Average Cost is at its maximum

C. Average Cost is constant

D. Average Cost is rising

Answer: Option A

Solution (By JKSSB Mock Tests)

When MC is below AC, it pulls the average down, so AC is falling. AC starts rising only when MC exceeds AC.

This question belongs to: Economy GK Economy Set 1

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B. Central Board of Indirect Taxes and Customs

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Correct Answer: Option A

Explanation:
The NAA's functions were transferred to the Competition Commission of India.

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option B

Explanation:
The Second Five Year Plan was based on the Mahalanobis model.

This question belongs to: Economy GK Economy Set 1

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