Producer Behaviour and Supply (CBSE Class-12 Economics): Questions 134 - 144 of 175

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Question number: 134

» Producer Behaviour and Supply » Revenue

True-False▾

Following Statement is true or false:

When total revenue is maximum, marginal revenue is also maximum.

Question number: 135

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Give the meaning of opportunity cost.

Question number: 136

» Producer Behaviour and Supply » Supply » Supply Curve

Short Answer Question▾

Write in Short

What causes a downward movement along a supply curve?

Question number: 137

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Commodities X and Y have equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 percent rise in its price. Calculate

Explanation

In this given Initial quantity supplied = 400 units and final quantity supplied = 500 units and rise in price = 20%

%change in quantity of x = 500400400×100

= 100400 × 100 = 25%

Elasticity of supply of X = %ch… (189 more words) …

Question number: 138

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Define fixed cost

Question number: 139

» Producer Behaviour and Supply » Supply » Supply Curve

Essay Question▾

Describe in Detail

Explain the effect of fall in prices of other goods on the supply of a given good

Explanation

A change in price of other goods can increase and decrease the supply of one good. The other good can be of two types either substitute or complementary:

(1) Substitute Goods: - Substitute goods are those goods which can be used as substitutes of each other. For example tea and… (57 more words) …

Question number: 140

» Producer Behaviour and Supply » Production Function

True-False▾

Following Statement is true or false:

Total product will increase only when marginal product increase

Question number: 141

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Explain the basis of classifying government receipts into revenue receipts and capital receipts. Give two example of each.

Explanation

Revenue receipts: - Do not create liability and do not lead to reduction in assets.

Example: (i) receipts from tax revenue (ii) receipts from non-tax revenue

Capital receipts: - Create liability and lead to reduction in assets.

Example: (i) recoveries of loans (ii) receipts through disinvestment.

Question number: 142

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Why is average total cost greater than average variable cost?

Question number: 143

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

From the following schedule find out the level of output at which the producer is in equilibrium. Give reason for your answer.

Output (units)

Price ( Rs. )

Total cost

1

24

26

2

24

50

3

24

72

4

24

92

5

24

115

6

24

139

7

24

165

Explanation

In this Total Revenue - Total Cost approach producer is in equilibrium at level of output difference between Total Revenue - Total Cost

Output (units)

Price ( Rs. )

Total cost (TC)

Total Revenue (Rs)

TR = price × output

TR -TC

1

24

26

24

-2

2

24

50… (68 more words) …

Question number: 144

» Producer Behaviour and Supply » Production Function

True-False▾

Following Statement is true or false:

When there are diminishing returns to a factor, total product always decreases.

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