In case of a giffen good income effect dominates


1. In case of a Giffen good, income effect dominates substitution effect.

True or False

2. All the points along the demand curve share the same elasticity.

True or False

3. Production function q = 2L + 3k^2 exhibits increasing returns to scale. True or false?

4. Assume that utility function is U(x,y) = xy2. The marginal rate of substitution between x and y changes if the amount of both goods doubles.

True or False

5. The marginal cost curve passes through the minimum point of the average fixed cost curve.

True or False

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Business Economics: In case of a giffen good income effect dominates
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