Producer Behaviour and Supply-Producer's Equilibrium (CBSE Class-12 Economics): Questions 7 - 12 of 12

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Question number: 7

» Producer Behaviour and Supply » Producer's Equilibrium

Short Answer Question▾

Write in Short

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.

Output, Average Revenue and Total Cost

shows AR and TC when output per unit changes

Output (Units)

Average Revenue (Rs)

Total Cost (Rs)

1

7

8

2

7

15

3

7

21

4

7

26

5

7

33

6

7

41

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

Question number: 8

» Producer Behaviour and Supply » Producer's Equilibrium

Short Answer Question▾

Write in Short

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

line supply curve?

Question number: 9

» 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: 10

» Producer Behaviour and Supply » Producer's Equilibrium

Essay Question▾

Describe in Detail

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

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… (185 more words) …

Question number: 11

» 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) …

Question number: 12

» Producer Behaviour and Supply » Producer's Equilibrium

Essay Question▾

Describe in Detail

Explain the meaning and conditions of producer’s equilibrium

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… (196 more words) …

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