Producer Behaviour and Supply-Production Function (CBSE Class-12 Economics): Questions 40 - 49 of 49

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Question number: 40

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

Explain ‘consumption function’ with help of a schedule. Also record marginal propensity to consume in the schedule.

Explanation

This consumption function is a relation between consumption expenditure and disposable income it is called consumption function. 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… (105 more words) …

Question number: 41

» 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 in that individual firms earns only normal profits and zero profits for economics. When exit firm operate at the point where minimum of long run average cost curve is contiguous price line. In this is form it… (47 more words) …

Question number: 42

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Define ‘Marginal Rate of Transformation’.

Question number: 43

» 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

  • The firms enter the industry when they find that the existing firms are earning super normal profits. Their entry raises output of the industry, brings down the market price and thus reduce profits. The entry
  • continues till profits are reduced to normal (or zero) The firms start
  • leaving the industry… (26 more words) …

Question number: 44

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

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

Explanation

The functional relationship between saving and income is called saving function it is represented as s =- S + s Yd

Here, S means autonomous saving

S represent Marginal propensity to save

Yd represents disposable income.

Income and saving function diagram

This image is of Income… (86 more words) …

Question number: 45

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Define ‘Production function’.

Question number: 46

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

What does a rightward shift of production possibility curve indicate?

Question number: 47

» Producer Behaviour and Supply » Production Function

Short Answer Question▾

Write in Short

Give meaning of Production function

Question number: 48

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

State the phases of the law of variable proportions in terms of total physical product and marginal physical product.

Explanation

Stage or phase of the law of variable proportion is given below:

(1) Increasing returns to the factor: -

It is first stage in that it is go from origin to destination means point where marginal product curve is maximum. In that stage total product is increasing at an increasing… (165 more words) …

Question number: 49

» Producer Behaviour and Supply » Production Function

Essay Question▾

Describe in Detail

State the phases of the law of variable proportions in terms of total physical product. Use diagram.

Explanation

Law of variable proportion attend an important place in economics. This law considers the production function with one factor variable and keeps the quantities of other factors fixed. It refer to the input and output relation when output is increased by the quantity of one input.

When quantity of one… (269 more words) …

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