The minimum Long Run Average Cost (LAC) can be determined on a
I. LAC curve for a normal production function
II. LAC curve for a linear production function
III. Planning curve
IV. Envelope curve

The capital that is consumed by an economy or a firm in the production process is known as

A. Capital loss

B. Production cost

C. Dead-weight loss

D. Depreciation

Who propounded the opportunity cost theory of international trade?

A. Ricardo

B. Marshall

C. Heckscher & Ohlin

D. Haberler

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to

A. Increase

B. Decrease

C. Remain the same

D. Become zero