Producer Behaviour and Supply (CBSE Class-12 Economics): Questions 86 - 95 of 175

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Question number: 86

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Give two reasons for the problem of choice.

Question number: 87

» Producer Behaviour and Supply » Supply » Supply Curve

Essay Question▾

Describe in Detail

Draw straight line supply curves with price elasticity of supply equal to (i) one, (ii) less than one and (iii) more than one

Explanation

Price elasticity of supply is the measure of change in quantity supplied of commodity because of the change in its price. Law of supply is the direction in which supply will change in result of change in price, a decrease in price will result into contraction of supply and a… (108 more words) …

Question number: 88

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Distinguish between Developmental expenditure and non-developmental expenditure.

Explanation

Distinguish between Developmental expenditure and non-developmental expenditure.

In detail explain distinguish between Developmental expenditure and non-developmental expenditure.

characteristics

Development expenditure

Non development

expenditure

Importance

The important heads of developmental expenditure within the revenue account are social and community services, economic services and grants- in-aid to states and union territories

Non-development… (81 more words) …

Question number: 89

» Producer Behaviour and Supply » Cost

Short Answer Question▾

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Give meanings of marginal cost

Question number: 90

» Producer Behaviour and Supply » Supply » Determinants of Supply

Short Answer Question▾

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Will the supply at a point on a positively sloped, straight line supply curve be unitary elastic, elastic or inelastic?

Question number: 91

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

What does the problem ‘for whom to produce’ refer to?

Question number: 92

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Complete the following table.

Find total revenue and marginal revenue.

In this table find total revenue and marginal revenue.

Price ( Rs. )

Output (units)

Total Revenue ( Rs. )

Marginal Revenue ( Rs. )

7

-

7

-

-

2

10

-

-

3

-

(-) 1

1

-

-

(-) 5

Explanation

Calculation total revenue and marginal revenue.

In this table calculation of total revenue and marginal revenue.

Price ( Rs. )

Output (units)

Total Revenue ( Rs. )

Marginal Revenue ( Rs. )

7

1

7

7

5

2

10

3

3

3

9

-1

1

4

4

-5

Question number: 93

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain why production possibility frontier is concave.

Explanation

Production Possibility Frontier (PPF) is concave to its origin because Marginal opportunity cost ΔlossofYΔgainofX in this commodity-Y to commodity-x shifted resources because resources are specific and more resources are allocated to x in place of… (43 more words) …

Question number: 94

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Explain producer’s equilibrium using schedule. Use total cost and total revenue approach.

Explanation

Producer earns maximum profits. Profit is the difference between total revenue and total cost. Producer is in equilibrium at that level of output where he is earning maximum profits. If he produces less than he does not maximize total profits.

Total cost and Total Revenue curves: -

Profit is the… (74 more words) …

Question number: 95

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used in production of that good are increased simultaneously and in the same proportion.

Explanation

The behavior of Total Product (TP) is technically Returns to Scale. There are three possibilities:

(1) TP rises in greater proportion than the rise in inputs it is known as Increasing Returns to Scale. For example: Suppose there are only two inputs labor (L) and Capital (K). Suppose 1K +… (112 more words) …

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