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
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
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
Write in Short
Define ‘aggregate supply’
Question number: 159
» Producer Behaviour and Supply » Production Function
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
Here, means autonomous saving
S represent Marginal propensity to save
represents disposable income.
Question number: 160
» Producer Behaviour and Supply » Cost
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… (56 more words) … |
Question number: 161
» Producer Behaviour and Supply » Supply » Elasticity of Supply
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… (20 more words) … |
Question number: 162
» Producer Behaviour and Supply » Production Function
Write in Short
Define ‘Production function’.
Question number: 163
» Producer Behaviour and Supply » Revenue
Write in Short
Give meaning of Revenue
Question number: 164
» Producer Behaviour and Supply » Cost
Describe in Detail
Calculate ‘total variable cost’ and ‘total cost’ from the following cost schedule of a firm whose fixed costs are Rs. 10.
| Output (Units) | 1 | 2 | 3 | 4 |
| Marginal Cost (Rs): | 6 | 5 | 4 | 6 |
Explanation
| 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
Write in Short
What does a rightward shift of production possibility curve indicate?
Question number: 166
» Producer Behaviour and Supply » Producer's Equilibrium
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
This image… (99 more words) …