Producer Behaviour and Supply-Producer's Equilibrium [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 7 - 12 of 12

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 7

Write in Short Short Answer▾

On the basis of the information given below, determine the level of output at which the producer will be in equilibrium. Use the marginal cost - marginal revenue approach. Give reasons for your answer.

Shows AR and TC when Output Per Unit Changes
Output (Units)Average Revenue (Rs)Total Cost (Rs)
178
2715
3721
4726
5733
6741

Why does the difference between Average Total Cost and Average Variable Cost

Edit

Question 8

Write in Short Short Answer▾

What will be the price elasticity of supply at a point on a positively sloped, straight

line supply curve?

Edit

Question 9

Appeared in Year: 2010

Describe in Detail Subjective▾

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

Edit

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’

In this diagram D1D1 indicate initial demand curve and S1S1 indicates …

… (77 more words, 16 figures) …

Question 10

Describe in Detail Subjective▾

Explain the condition of consumer՚s equilibrium in case of (I) single commodity and (ii) two commodities. Use utility approach.

Edit

Explanation

The condition of consumer՚s equilibrium in case of

(i) single commodity: In this case of single commodity, a consumer contain equilibrium when the utility from additional unit of rupee spent on commodity become equal to Marginal utility of Money

Marginal utility of rupee spent on commodity is derived from additional unit of rupee spent on commodity

Ma…

… (102 more equations, 13 figures) …

Question 11

Describe in Detail Subjective▾

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

Edit

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 diagram shows producer՚s Equilibrium is determined at OQ …

… (94 more words, 4 figures) …

Question 12

Describe in Detail Subjective▾

Explain the meaning and conditions of producer՚s equilibrium

Edit

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.

Conditions of producer՚s equilibrium are given below:

(1) First condition is Marginal co…

… (191 more words) …