Excise tax is a part of Variable cost. Excise duty is an indirect tax. That means the tax amount is included as part of the selling price. Excise duty, also known as excise tax, is ultimately passed on and paid by the consumer when he makes a purchase.

Unemployment due to mechanization of agriculture is Structural. Due to structural changes in the economy, structural unemployment may take place. Structural unemployment is caused by a decline in demand for production in a particular industry, and consequent disinvestment and reduction in its manpower requirements.

The labour force participation rate is the proportion of skilled workers population. It refers to the number of people who are either employed or are actively looking for work.

Risks in the business arise because of Introduction of the new products, Uncertain policy of rival firms and Changes in tastes.

Indifference curves are convex to the origin because two goods are imperfect substitutes.

Profit is maximum when Distance between TR and TC is maximum. At the equilibrium point, the firm earns maximum profits.

A firm under monopoly faces a downward sloping demand curve or average revenue curve. In monopoly, since average revenue falls as more units of output are sold, the marginal revenue is less than the average revenue. In other words, under monopoly the MR curve lies below the AR curve.

If there are implicit costs of production Economic profit will be less than accounting profit. Economic profit is total revenue minus opportunity cost. Accounting profit is total revenue minus explicit cost. Opportunity costs are higher than explicit costs because opportunity costs also include implicit costs.

Giffen goods are those goods for which demand increases as price increases. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.

At the point of equilibrium of firm (under perfect competition) MC curve must be rising. If the firm is producing at an output level where the MC is falling, then this implies that it can further increase the profit by slightly raising the level of output. Equilibrium is established at the point where the MR is equal to MC and MC is rising.

Standard of living of a country can be raised if it increases Production. Labor productivity is a measure of the amount of goods and services that the average worker produces in an hour of work. The level of productivity is the single most important determinant of a country's standard of living, with faster productivity growth leading to an increasingly better standard of living.

According to Malthus, population increases by progression of Geometric.

All labour is Heterogeneous.

Mobility of labour Increases efficiency of labour and also increases division of labour.

When the perfectly competitive firm and industry are in long run equilibrium, then P = MR = SAC = LAC,
D = MR = SMC = LMC and,
P = MR = Lowest point on the LAC curve.

An isoquant slopes downward to the right. This implies that the Isoquant is a negatively sloped curve. This is because when the quantify of factor K (capital) is increased, the quantity of L (labor) must be reduced so as to keep the same level of output.

In monopoly, the relationship between average and marginal revenue curves is that AR curve lies above the MR curve.

The total effect of a price change of a commodity is substitution effect plus income effect. The income effect is the change in consumption patterns due to a change in purchasing power. This occurs with income increases, price changes, and even currency fluctuations. Since income is not a good in and of itself (it can only be exchanged for goods and services), price decreases increase purchasing power.

Depreciation on machines owing to time is considered as fixed cost. Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset. Depreciation cannot be considered a variable cost, since it does not vary with activity volume. However, there is an exception.