Producer Behaviour and Supply (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 145 - 155 of 175

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Question number: 145

» Producer Behaviour and Supply » Cost

True-False▾

Following Statement is true or false:

When marginal cost rises, average cost will also rise.

Question number: 146

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Given below is cost and revenue schedule of a producer. At what level of output is producer in equilibrium? Give reasons for your answer.

Output (Units)

Price ( Rs. )

Total cost ( Rs. )

1

10

13

2

10

22

3

10

30

4

10

38

5

10

47

6

10

57

7

10

71

Explanation

In this cost and revenue schedule of a producer is given

Output (Units)

Price ( Rs. )

Total cost ( Rs. )

Total Revenue

TR = Price Equation Output

Profit = TR - TC

1

10

13

10

-3

2

10

22

20

-2

3

10

30

30

0

4

… (73 more words) …

Question number: 147

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

what is revenue deficit? What are its implications?

Explanation

Revenue deficit is generated when Revenue Receipts of government are less than Revenue Expenditure of the government.

Revenue deficit is related to revenue expenditure and revenue receipts of the government.

Revenue receipts and revenue expenditures are related to high revenue deficit and it gives some error to the government to

… (106 more words) …

Question number: 148

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain ‘consumption function’ with the help of a schedule and diagram.

Explanation

Consumption function is relation between consumption expenditure and disposable income. It is represented as

C = f Equation ) it

means,

c is consumption expenditure,

Equation is disposable income

F means functional relationship between consumption expenditure and disposable income.

Consumption expenditure has divided into two parts.

(1) Autonomous consumption expenditure

… (75 more words) …

Question number: 149

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain ‘consumption function’ with help of a schedule. Also record marginal propensity to consume in the schedule.

Explanation

This consumption function is a relation between consumption expenditure and disposable income it is called consumption function. It is represented as C = f Equation ) it means

c is consumption expenditure,

Equation is disposable income

F means functional relationship between consumption expenditure and disposable income.

Consumption expenditure has divided

… (87 more words) …

Question number: 150

» Producer Behaviour and Supply » Supply » Market Supply

Short Answer Question▾

Write in Short

What is ‘market supply’?

Question number: 151

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.

Explanation

(i) Revenue Expenditure: -

Revenue expenditure refer to the expenditure which creates any asset and do not cause reduction in liability of government. It is recurring in nature. it is normal function of government and the provision for service.

Example: - pensions, interests, expenditure etc.

The revenue expanditure.

The Revenue Expanditure.

This image

… (45 more words) …

Question number: 152

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to losses in the long run if the firms are free to leave the industry.

Explanation

  • In the long run if the firms are free to leave the industry in that individual firms earns only normal profits and zero profits for economics. When exit firm operate at the point where minimum of long run average cost curve is contiguous price line. In this is form it
… (47 more words) …

Question number: 153

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Define ‘Marginal Rate of Transformation’.

Question number: 154

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Distinguish between elastic and inelastic supply

Explanation

Characteristics

Elastic Supply

Inelastic Supply

Definition

Elastic supply means increase in price causes a greater percent increase in supply.

Inelastic supply. This means that an increase in price causes a less percent increase in supply. It has a price elasticity of supply of less than 1.

How many price elasticity?

… (37 more words) …

Question number: 155

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between fixed cost and variable cost giving example.

Explanation

Characteristics

Fixed cost

Variable cost

Definition

Fixed cost means it is indirect cost it is not dependent on level of goods or services.

Variable cost means cost of labor, material and change in volume of production.

Behavior

It is constant for given time period

It changes with change in the

… (8 more words) …

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