Class 12 Micro Economics - Chapter Non-competitive Markets NCERT Solutions | A monopoly firm has a total fixed cost o

List the three different ways in which oligopoly firms may have.

Will the monopolist firm continue to produce in the short run if a loss is incurred at the best short run level of output?

Comment on the shape of MR curve in case when TR curve is a

(a) Positively sloped straight line

(b) Horizontal straight line

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

What is meant by prices being rigid? How can oligopoly behavior lead to such an outcome? 

If duo poly behavior is one that is described by Cornet, the market demand curve is given by the equation q = 200 - 4p and both the firms have zero costs, find the quantity supplied by each firm in equilibrium and the equilibrium market price. 

The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity are given in the schedules below. 

Use the information given to calculate the following:

(a) The MIR and MC schedules

(b) The quantities for which MIR and MC are equal

(c) The equilibrium quantity of output and the equilibrium price of the commodity

(d) The total revenue, total cost and total profit in the equilibrium

What would be the shape of the demand curve so that the total revenue curve is?

(a) A positively sloped straight line passing through the origin?

(b) A horizontal line?

If the monopolist firm of Exercise 3 was a public sector firm. The government set a rule for its manager to accept the government fixed price as given (i.e. to be a price taker and therefore behave as a firm in a perfectly competitive market). And the government has decided to set the price so that demand and supply in the market are equal. What would be the equilibrium price, quantity and profit in this case?

Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.

Explain the concept of a production function

Explain market equilibrium.

Discuss the central problems of an economy.

What are the characteristics of a perfectly competitive market?

What do you mean by the budget set of a consumer?

What is the total product of input?

When do we say that there is an excess demand for a commodity in the market?

What do you mean by the production possibilities of an economy?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

What is budget line?

What happens to the budget set if both the prices as well as the income double?

Suppose there are two consumers in the market for a good and their demand functions are as follows:

d1(p) = 20 – p for any price less than or equal to 20, and d1(p) = 0 at any price greater than 20.

d2(p) = 30 – 2p for any price less than or equal to 15 and d1(p) = 0 at any price greater than 15.

Find out the market demand function.

At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer. 

Consider a market where there are just two consumers and suppose their demands for the good are given as follows:

Calculate the market demand for the good.

What does the average fixed cost curve look like? Why does it look so? 

Briefly explain the concept of the cost function. 

What are the average fixed cost, average variable cost and average cost of a firm? How are they related? 

What do you mean by substitutes? Give examples of two goods which are substitutes of each other.

Can you think of any commodity on which the price ceiling is imposed in India? What may be the consequence of price-ceiling?

Using supply and demand curves show how an increase in the price of shoes affects the price of a pair of socks and the number of pairs of socks bought and sold.