Producer Behaviour and Supply-Producer's Equilibrium [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 7 - 12 of 12
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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.
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
EditQuestion 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?
EditQuestion 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.
EditExplanation
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
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.
EditExplanation
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
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 diagram shows producer՚s Equilibrium is determined at OQ …
… (94 more words, 4 figures) …
Question 12
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) …