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

Question

Share Report Error

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

A. Average Cost is at its maximum

B. Average Cost is rising

C. Average Cost is falling

D. Average Cost is constant

Answer: Option C

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

The 'maternity benefit' under the Maternity Benefit Act provides paid leave of how many weeks?

A. 14 weeks

B. 26 weeks

C. 12 weeks

D. 30 weeks

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
The Maternity Benefit Amendment Act 2017 increased paid maternity leave to 26 weeks.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

The 'National Investment and Manufacturing Zones' are part of which policy?

A. Digital India

B. National Manufacturing Policy

C. Skill India

D. Startup India

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
National Investment and Manufacturing Zones are part of the National Manufacturing Policy.

This question belongs to: Economy GK Economy Set 1

Question #3

Share Report

The 'Goods and Services Tax' on architectural services is:

A. 12%

B. 5%

C. 18%

D. 28%

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
Architectural services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs