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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): The difference between AC and AVC is due to AFC.
Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'C'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) i...
AVC is obtained by dividing the total variable cost by output, i.e., AVC = TVC/Q. Thus, AVC is a part of AC, given AC = AFC + AVC. This is because AC not only includes AVC but also AFC which falls continuously as output rises. Not only this, initially, with the increase in output, AVC falls.
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Direction: In the following questions, a statement of Assertion (A) i...
Assertion (A): The difference between AC and AVC is due to AFC.
Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.
The correct answer is option 'C' - Assertion (A) is true, but Reason (R) is false.
Explanation:
AC (Average Cost) is the total cost divided by the quantity of output produced, while AVC (Average Variable Cost) is the total variable cost divided by the quantity of output produced. AFC (Average Fixed Cost) is the difference between AC and AVC.
The assertion states that the difference between AC and AVC is due to AFC. This is true because AFC represents the average fixed cost per unit of output. As output increases, the fixed cost is spread over a larger quantity of output, resulting in a decrease in AFC. Therefore, the difference between AC and AVC decreases.
However, the reason given is incorrect. The reason states that as output increases, AFC decreases, so the difference between AC and AVC decreases. This is not true because the difference between AC and AVC is not directly influenced by changes in AFC. The difference between AC and AVC is determined by the difference between total cost and total variable cost, which is not affected by changes in AFC.
In summary, the assertion is true because the difference between AC and AVC is indeed due to AFC. However, the reason is false because it incorrectly states that as output increases, AFC decreases, leading to a decrease in the difference between AC and AVC.
Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.
The correct answer is option 'C' - Assertion (A) is true, but Reason (R) is false.
Explanation:
AC (Average Cost) is the total cost divided by the quantity of output produced, while AVC (Average Variable Cost) is the total variable cost divided by the quantity of output produced. AFC (Average Fixed Cost) is the difference between AC and AVC.
The assertion states that the difference between AC and AVC is due to AFC. This is true because AFC represents the average fixed cost per unit of output. As output increases, the fixed cost is spread over a larger quantity of output, resulting in a decrease in AFC. Therefore, the difference between AC and AVC decreases.
However, the reason given is incorrect. The reason states that as output increases, AFC decreases, so the difference between AC and AVC decreases. This is not true because the difference between AC and AVC is not directly influenced by changes in AFC. The difference between AC and AVC is determined by the difference between total cost and total variable cost, which is not affected by changes in AFC.
In summary, the assertion is true because the difference between AC and AVC is indeed due to AFC. However, the reason is false because it incorrectly states that as output increases, AFC decreases, leading to a decrease in the difference between AC and AVC.
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer?
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Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer?.
Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The difference between AC and AVC is due to AFC.Reason (R): As output increases AFC decreases, so the difference between AC and AVC decreases.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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