Average revenue is the amount money received by a firm per unit of output sold. Marginal revenue is the change in total revenue resulting from a small change in the quantity sold. In a perfectly competitive market, a firm’s Average Revenue is always equal to Marginal Revenue.

Correct Option: A

Average revenue is the amount money received by a firm per unit of output sold. Marginal revenue is the change in total revenue resulting from a small change in the quantity sold. In a perfectly competitive market, a firm’s Average Revenue is always equal to Marginal Revenue.

The addition to total cost by producing an additional unit of output by a firm is called Marginal cost. Average cost is the total cost of producing a given output divided by that output.

Correct Option: C

The addition to total cost by producing an additional unit of output by a firm is called Marginal cost. Average cost is the total cost of producing a given output divided by that output.

Services done by a house-wife in her own house are not included in production.

Correct Option: D

Services done by a house-wife in her own house are not included in production.

Plant and machinery are Producers’ goods. Together with stocks and work in progress, these goods are collectively termed ‘Capital’.

Correct Option: A

Plant and machinery are Producers’ goods. Together with stocks and work in progress, these goods are collectively termed ‘Capital’.

Demand for complementary goods is called Joint Demand. Joint Demand is the demand in which goods are related in such a way that an increase in the demand for one causes an increase in the demand for the other.

Correct Option: A

Demand for complementary goods is called Joint Demand. Joint Demand is the demand in which goods are related in such a way that an increase in the demand for one causes an increase in the demand for the other.