Producer Behaviour and Supply-Production Function (CBSE Class-12 Economics): Questions 19 - 30 of 49

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 19

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Distinguish between Marginal utility and Total utility

Explanation

Distinguish between Marginal utility and Total utility

In detail Marginal utility and Total utility difference.

Marginal utility

Total utility

Marginal utility is the satisfaction that we get from consuming another quantity of a good or service.

Total utility is the total satisfaction that we get from consuming a given total… (102 more words) …

Question number: 20

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Give one reason for a rightward shift of the Production Possibility Curve

Question number: 21

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Give two reasons for the problem of choice.

Question number: 22

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Distinguish between Developmental expenditure and non-developmental expenditure.

Explanation

Distinguish between Developmental expenditure and non-developmental expenditure.

In detail explain distinguish between Developmental expenditure and non-developmental expenditure.

characteristics

Development expenditure

Non development

expenditure

Importance

The important heads of developmental expenditure within the revenue account are social and community services, economic services and grants- in-aid to states and union territories

Non-development… (81 more words) …

Question number: 23

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

What does the problem ‘for whom to produce’ refer to?

Question number: 24

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain why production possibility frontier is concave.

Explanation

Production Possibility Frontier (PPF) is concave to its origin because Marginal opportunity cost ΔlossofYΔgainofX in this commodity-Y to commodity-x shifted resources because resources are specific and more resources are allocated to x in place of… (43 more words) …

Question number: 25

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used in production of that good are increased simultaneously and in the same proportion.

Explanation

The behavior of Total Product (TP) is technically Returns to Scale. There are three possibilities:

(1) TP rises in greater proportion than the rise in inputs it is known as Increasing Returns to Scale. For example: Suppose there are only two inputs labor (L) and Capital (K). Suppose 1K +… (112 more words) …

Question number: 26

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to losses in the long run if the firms are free to leave the industry.

Explanation

In the long run if the firms are free to leave the industry than that individual firm earns only normal profits and zero profits for economicy. When a firm exits it operates at the point where minimum of long run average cost curve is contiguous price line. Firms don’t earn… (43 more words) …

Question number: 27

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain what happens to the profits in the long run if the firms are free to enter the industry.

Explanation

In the long run if the firms are free to enter the industry it will earn some profit but it will be zero profits in economiy. Entry of individual firm is operated at point where minimum of long run average cost curve is as a priceline.

In such situation firm… (50 more words) …

Question number: 28

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain “Returns to Scale” using numerical examples. Give reasons.

Explanation

When a producer changes all factors of production in a proportion. The proportional relationship between output and factor is known as returns to scale. When all inputs are increased in the same proportion and three possibilities:

Revenue receipts does not create responsibility and reduction in assets. Receipts from tax revenue… (13 more words) …

Question number: 29

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain the central problem ‘how to produce’.

Explanation

  • This problem occurs because there are many techniques available for production of commodity like for production of rice, we may use more labor and less capital or less labor more capital both this technique we can produce equal amount of rice.
  • The problem is that to how resources should be… (52 more words) …

Question number: 30

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Calculate ‘intermediate consumption’ from the following data:

Calculate intermediate consumption

Find the intermediate consumption

-

( Rs. lakhs)

Value of output

200

Net value added at factor cost

80

Sales tax

15

Subsidy

5

Depreciation

20

Explanation

Intermediate consumption =

Value of output - Net value added at factor cost - Sales tax - Subsidy - Depreciation

= 2008015520

= Rs. 90 lakh

Sign In