Producer Behaviour and Supply-Production Function (CBSE Class-12 Economics): Questions 31 - 39 of 49

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Question number: 31

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Define ‘Production function’

Question number: 32

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Distinguish between intermediate products and final products. Give example.

Explanation

Characteristic

Final products

Intermediate products

What is use?

Final products are products that are ready for use by final consumers.

Intermediate products used as raw materials for production.

Processing

Products do not require any further processing.

Products require further processing and go in various stages of production.

Example

Wheat purchased… (21 more words) …

Question number: 33

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

In an economy S=-50 + 0.5 Y is the saving function (Where S = saving and Y = national income) and investment expenditure is 7000. Calculate:

(i) Equilibrium level of national income

(ii) Consumption expenditure at equilibrium level of national income.

Explanation

(I) Equilibrium level of national income

I = S

7000=50+0.5Y

7000+50=0.5Y

Y= 70500.5 = 14, 100

So, Equilibrium level of national income is 14, 100.

(iii) Consumption expenditure at equilibrium level of national

Y = C + I… (25 more words) …

Question number: 34

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Distinguish between domestic product and national product. When can domestic product be more than national product?

Explanation

Characteristics

Domestic product

National product

What in comprises?

Domestic product comprises of goods and services and it is produced by domestic territory.

National product comprises of goods and services produced by residential.

Income

It is exclusive of income from abroad

It is inclusive income from abroad.

Who produces?

It is… (11 more words) …

Question number: 35

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain with the help of total product curve the meaning of increasing return to a factor.

Explanation

Increasing returns to a factor refers total product (TP) increases at the increasing rate. Increasing returns to a factor can be shown with the help of total product curve as follows:

The total product (TP) increases at increasing rate

The Total Product (TP) Increases at Increasing Rate

This image is of total product (TP) increases at increasing rate… (17 more words) …

Question number: 36

» Producer Behaviour and Supply » Production Function

True-False▾

Following Statement is true or false:

Total product will increase only when marginal product increase

Question number: 37

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

From the following schedule find out the level of output at which the producer is in equilibrium. Give reason for your answer.

Output (units)

Price ( Rs. )

Total cost

1

24

26

2

24

50

3

24

72

4

24

92

5

24

115

6

24

139

7

24

165

Explanation

In this Total Revenue - Total Cost approach producer is in equilibrium at level of output difference between Total Revenue - Total Cost

Output (units)

Price ( Rs. )

Total cost (TC)

Total Revenue (Rs)

TR = price × output

TR -TC

1

24

26

24

-2

2

24

50… (68 more words) …

Question number: 38

» Producer Behaviour and Supply » Production Function

True-False▾

Following Statement is true or false:

When there are diminishing returns to a factor, total product always decreases.

Question number: 39

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain ‘consumption function’ with the help of a schedule and diagram.

Explanation

Consumption function is relation between consumption expenditure and disposable income. It is represented as

C = f (Yd) it

means,

c is consumption expenditure,

Yd is disposable income

F means functional relationship between consumption expenditure and disposable income.

Consumption expenditure has divided into two parts.

(1)… (102 more words) …

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