Producer Behaviour and Supply [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 143 - 150 of 174
Choose Programs:
🎯 508 Long Answer, 14 MCQs (& PYQs) with Full Explanations (2024-2025 Exam)
Rs. 900.00 -OR-
3 Year Validity (Multiple Devices)
CoverageDetailsSample Explanation
Help me Choose & Register (Watch Video) Already Subscribed?
Question 143
Statement True-False▾
When there are diminishing returns to a factor, total product always decreases.
Choices
Choice (4) | Response | |
---|---|---|
a. | True | |
b. | False | |
c. | Question does not provide sufficient data or is vague | |
d. | None of the above |
Question 144
Statement True-False▾
When marginal cost rises, average cost will also rise.
Choices
Choice (4) | Response | |
---|---|---|
a. | True | |
b. | False | |
c. | All of the above | |
d. | None of the above |
Question 145
Describe in Detail Subjective▾
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 (₹) | Total cost (₹) |
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 (₹) | Total cost (₹) | Total Revenue TR = Price Output | Profit = TR - TC |
1 | 10 | 13 | 10 | -3 |
2 | 10 | 22 | 20 | -2 |
3 | 10 | 30 | 30 | 0 |
4 | 10 | 38 | 40 | 2 |
5 | 10 | 47 | 50 | 3 |
6 | 10 | 57 | 60 | 3 |
7 | 10 | 71 | 70 | 1 |
In this schedule Total Revenue and Total cost is maximum at 5th and 6th unit of output so, the producer attain equilibrium at 5th unit of outp…
… (25 more words) …
Question 146
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 cut its expenditure. …
… (85 more words, 6 figures) …
Question 147
Describe in Detail Subjective▾
Explain ‘consumption function’ with the help of a schedule and diagram .
EditExplanation
Consumption function is relation between consumption expenditure and disposable income. It is represented as
C = f ) it
means ,
c is consumption expenditure,
is disposable income
F means functional relationship between consumption expenditure and disposable income.
Consumption expenditure has divided int…
… (45 more equations, 3 figures) …
Question 148
Describe in Detail Subjective▾
Explain ‘consumption function’ with help of a schedule. Also record marginal propensity to consume in the schedule.
EditExplanation
This consumption function is a relation between consumption expenditure and disposable income it is called consumption function. It is represented as C = f ) it means
C is consumption expenditure,
is disposable income
F means functional relationship between consumption expenditure and disposable incom…
… (61 more equations, 4 figures) …
Question 149
Question 150
Describe in Detail Subjective▾
Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.
EditExplanation
(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.
(ii) Capital Expenditure:- capital exp…
… (35 more words, 1 figure) …