Producer Behaviour and Supply (CBSE Class-12 Economics): Questions 62 - 68 of 175

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Question number: 62

» Producer Behaviour and Supply » Supply » Supply Schedule

Appeared in Year: 2011

Essay Question▾

Describe in Detail

What is a supply schedule? What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain.

Explanation

A table which contains values for the price of a good and the quantity that would be supplied at that price is called supply schedule.

The supply schedule.

In detail supply schedule.

Price (Rs)

Quantity (units)

1

5

2

10

3

15

4

20

This represent graphically the effect on… (89 more words) …

Question number: 63

» Producer Behaviour and Supply » Producer's Equilibrium

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the effect of increase in income of buyers of a ‘normal commodity’ on its equilibrium price.

Explanation

Normal goods share positive relationship with consumer’s income. When consumers’ income increases or decreases than demand of normal goods also increases or decreases. This has been described in the figure that follows

effect of increase in income of buyers of a 'normal commodity'

Effect of Increase in Income of Buyers of a ‘Normal Commodity’

effect of increase in income of buyers… (88 more words) …

Question number: 64

» Producer Behaviour and Supply » Production Function

Appeared in Year: 2011

Short Answer Question▾

Write in Short

Why is a production possibility curve concave? Explain.

Question number: 65

» Producer Behaviour and Supply » Revenue

Appeared in Year: 2009

Essay Question▾

Describe in Detail

Complete the following table:

Calculation of Total revenue and Marginal revenue.

Calculation of Total revenueand Marginal revenuein detail.

Output (units)

Price ( Rs. )

Average revenue

Total Revenue ( Rs. )

Marginal Revenue ( Rs. )

4

9

36

-

5

-

-

4

6

-

42

-

7

6

-

-

8

-

40

-

Explanation

Calculation of Total revenue and Marginal revenue.

Calculation of Total revenueand Marginal revenuein detail.

Output (units)

Price ( Rs. )

Average revenue

Total Revenue ( Rs. )

Marginal Revenue ( Rs. )

4

9

36

-

5

8

40 (8 Equation 5)

4 (40 - 36)

6

7 (42/7)

42… (61 more words) …

Question number: 66

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Appeared in Year: 2010

Essay Question▾

Describe in Detail

At a price of Rs. 5 per unit of commodity A, total revenue is Rs. 800. When its price rises by 20 percent, total revenue increases by Rs. 400. Calculate its price elasticity of supply.

Explanation

In this initial price (P1) = 5

Total revenue (TR) =800

So, Total revenue = price Equation Quantity

800 = 5 Equation Quantity

Quantity = Equation = 160

Given: 20 % rise in price, means Equation P = 20%

20 % of 5 = Equation =1

So, P1 = 5+1… (66 more words) …

Question number: 67

» Producer Behaviour and Supply » Cost

Appeared in Year: 2012

Essay Question▾

Describe in Detail

A producer invests his own savings in starting of a business and employs a manager to look after it. Identify implicit and explicit costs from this information. Explain.

Explanation

Explicit Costs: paid directly in money - money costs. A firm incurs explicit costs when it pays for a factor of production at the same time it uses it.

  • Explicit Cost = payments by a firm to purchase the service of productive resources (wages, interest, rent, capital)
  • Implicit Costs: measured… (120 more words) …

Question number: 68

» Producer Behaviour and Supply » Revenue

Appeared in Year: 2012

Short Answer Question▾

Write in Short

What is the behavior of average revenue in a market in which a firm can sell more only by lowering the price?

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