1. From the given table calculate the following mentioning the formulas clearly for Variable cost, Average fixed cost, Average variable cost and Average cost.
|Output||Total cost||Fixed cost||Variable cost||Average fixed cost||Average variable cost||Average cost|
2. State how the ordinal utility approach to consumer behavior is different from the cardinal utility approach by Marshall. In the context of indifference curve (IC) technique using ordinal utility approach, explain whether following two statements are true. – “IC slopes downwards” and “Slope of indifference curve indicates the rate at which individuals are ready to substitute one commodity by the other”. Substantiate your view on each of the statements separately.
3. a. “Business Cycle is dynamic in nature and moves through various phases”. Elaborate the given statement with different phases of Business cycle.
3. b. Elaborate Price Demand, Income Demand and Join Demand and cite an example to enumerate these types of demand.