Give two examples of fixed costs.

Define marginal cost.

When is the demand for a good said to be inelastic?

4.

Given the meaning of market demand.

Under which market form a firm’s marginal revenue is always equal to price?

Explain the difference between an inferior good and a normal good.

Explain the law of diminishing marginal utility with the help of a total utility schedule.

Explain the condition of consumer’s equilibrium with the help of utility analysis. 

When the price of a good rises from Rs 20 per unit to Rs 30 per unit, the revenue of the firm producing this good rises from Rs 100 to Rs 300. Calculate the price elasticity of supply.