Producer Behaviour and Supply (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 117 - 125 of 175

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Question number: 117

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Complete the following table:

Output (units)

Average Variable cost ( Rs. )

Total cost

Marginal cost

1

-

60

20

2

18

-

-

3

-

-

18

4

20

120

-

5

20

-

-

Explanation

swer: -

Output (units)

Average Variable cost ( Rs. )

Total cost

Marginal cost

TVC

1

20 (20/1)

60

20

20

2

18

76 (36 + 40)

16 (94 - 76)

36 (18 Equation 2)

3

18 (54/3)

94 (76 + 18)

18

54

4

20

120

26 (120 -

… (49 more words) …

Question number: 118

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Distinguish between intermediate products and final products. Give example.

Explanation

Characteristic

Final products

Intermediate products

What is use?

Final products are products that are ready for use by final consumers.

Intermediate products used as raw materials for production.

Processing

Products do not require any further processing.

Products require further processing and go in various stages of production.

Example

Wheat purchased

… (21 more words) …

Question number: 119

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

Average cost falls only when marginal cost falls.

Question number: 120

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16 percent rise in the price X results in a 40 percent rise in its supply. If the price of Y falls by 8 percent, calculate the percentage fall in its supply.

Explanation

Elasticity of supply = Equation

Elasticity of supply of X = Equation =2.5

Than

Elasticity of supply of Y = Equation (elasticity of supply of X)

Elasticity of supply of Y = Equation =1.25

Elasticity of supply of Y =

Equation

1.25 = Equation

Equation = 1.25 Equation 8 =

… (16 more words) …

Question number: 121

» Producer Behaviour and Supply » Supply » Supply Schedule

Essay Question▾

Describe in Detail

With the help of demand and supply schedule, explain the meaning of excess demand and its effect on price of commodity.

Explanation

Excess demand is when market demand exceeds market supply at a market price. It is represented as

Quantity of demand > Quantity of supply

Price (Rs)

Quantity demanded

Quantity supplied

14

1

7

12

2

6

10

3

5

8

4

4 (Equilibrium)

6

5

3 Excess Demand

4

6

… (50 more words) …

Question number: 122

» Producer Behaviour and Supply » Supply » Supply Curve

Short Answer Question▾

Write in Short

Give one reason for rightward shift in supply curve.

Question number: 123

» Producer Behaviour and Supply » Supply » Supply Schedule

Essay Question▾

Describe in Detail

Explain the meaning of ‘increase in supply’ and ‘increase in quantity supplied’ with the help of schedule.

Explanation

Increase in supply of good refer to rise in supply of good because of some changes in determine other than price of good

Price (Rs)

Quantity supplied (units)

10

110

10

130

10

150

10

180

In this given schedule when price is constant than supply of good increase.

Increase

… (32 more words) …

Question number: 124

» Producer Behaviour and Supply » Producer's Equilibrium

Essay Question▾

Describe in Detail

Explain the condition of consumer’s equilibrium in case of (I) single commodity and (ii) two commodities. Use utility approach.

Explanation

The condition of consumer’s equilibrium in case of

(i) single commodity: -In this case of single commodity, a consumer contain equilibrium when the utility from additional unit of rupee spent on commodity become equal to Marginal utility of Money

Marginal utility of rupee spent on commodity is derived from additional

… (145 more words) …

Question number: 125

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

The difference between average total cost and average variable cost decrease with decrease in the level of output.

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