UGC NET Management || Economics

The essence of the law of diminishing returns is

When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements

is/are false?

(a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.

(b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of

labour.

(c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of

labour.

Which one of the following is NOT the pre-requisite of price discrimination?

The following are the two statements regarding the concept of profit. Indicate the correct code of the statements being correct or incorrect.

Statement (I): Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses.

Statement (II): Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain investment at its current level.

Which one of the following sets is incorrect to show the inter-relationships among price elasticity coefficient, change in price and change

in total revenue?