Producer Behaviour and Supply (CBSE Class-12 Economics): Questions 156 - 166 of 175

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Question number: 156

» Producer Behaviour and Supply » Revenue

Essay Question▾

Describe in Detail

Complete the following table:

Price ( Rs. )

Output (Units)

Total Revenue (Rs)

Marginal Revenue ( Rs. )

-

1

6

-

4

-

-

2

-

3

6

-

1

-

-

(-) 2

Explanation

Price ( Rs. )

Output (Units)

Total Revenue (Rs)

Marginal Revenue ( Rs. )

6

1

6

6

4

2

8 (4 × 2)

2

2

3

6

-2 (6 - 8)

1

4

4 (1 × 4)

(-2)

Question number: 157

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to the profits in the long run if the firms are free to enter the industry.

Explanation

  • The firms enter the industry when they find that the existing firms are earning super normal profits. Their entry raises output of the industry, brings down the market price and thus reduce profits. The entry
  • continues till profits are reduced to normal (or zero) The firms start
  • leaving the industry… (26 more words) …

Question number: 158

» Producer Behaviour and Supply » Supply » Determinants of Supply

Short Answer Question▾

Write in Short

Define ‘aggregate supply’

Question number: 159

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

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

Explanation

The functional relationship between saving and income is called saving function it is represented as s =- S + s Yd

Here, S means autonomous saving

S represent Marginal propensity to save

Yd represents disposable income.

Income and saving function diagram

This image is of Income… (86 more words) …

Question number: 160

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between Average cost and Marginal cost giving an example.

Explanation

Characteristics

average cost

marginal cost

Definition

average cost is the cost of producing amount of output divided by the cost per unit

When a producer increases its output by one unit, there is a change in the total cost of producing that commodity this change in cost is known as… (120 more words) …

Question number: 161

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Distinguish between perfectly elastic and perfectly inelastic supply.

Explanation

Characteristics

perfectly elastic supply

perfectly inelastic supply

Definition

Perfectly elastic supply occurs if any decrease in product price.

Perfectly inelastic demand occurs when buyers have no choice in the consumption of a good.

What affected?

Perfectly elastic means that quantity supplied is affected by any change in price.

Perfectly inelastic… (76 more words) …

Question number: 162

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Define ‘Production function’.

Question number: 163

» Producer Behaviour and Supply » Revenue

Short Answer Question▾

Write in Short

Give meaning of Revenue

Question number: 164

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Calculate ‘total variable cost’ and ‘total cost’ from the following cost schedule of a firm whose fixed costs are Rs. 10.

Calculate total variable cost and total cost

Calculation of total variable cost and total cost in detail

Output (Units)

1

2

3

4

Marginal Cost (Rs):

6

5

4

6

Explanation

Calculate total variable cost and total cost

Calculation of total variable cost and total cost in detail

Output (units)

Marginal cost (RS)

Fixed cost

Total variable cost

Total cost

1

6

10

6

16

2

5

10

11

21

3

4

10

15

25

4

6

10

21

31

In… (36 more words) …

Question number: 165

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

What does a rightward shift of production possibility curve indicate?

Question number: 166

» Producer Behaviour and Supply » Producer's Equilibrium

Essay Question▾

Describe in Detail

Explain producer’s equilibrium with the help of a diagram.

Explanation

Producer’s equilibrium: - Equilibrium refers to a state of rest when no change is required. A firm (producer) is said to be in equilibrium when it has no inclination to expand or to contract its output. This state either reflects maximum profits or minimum losses.

The producer's Equilibrium

The Producer’S Equilibrium

This image… (99 more words) …

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