Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | What do the short-run marginal cost, ave

What is the total product of input?

Let the production function of a firm be Q=5L1/2K1/2Q=5L1/2K1/2 Find out the maximum possible output that the firm can produce with 100 units of LL and 100 units of KK.

When does a production function satisfy decreasing returns to scale? 

What do the long-run marginal cost and the average cost curves look like? 

Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve? 

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

Explain the relationship between the marginal products and the total product of an input. 

Why is the short-run marginal cost curve 'U'-shaped? 

What is the law of variable proportions? 

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

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?

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?

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

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?

At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market? How is the equilibrium quantity determined in such a market?

What does the price elasticity of supply mean? How do we measure it?

What will happen if the price prevailing in the market is?

i. Above the equilibrium price

Ii. Below the equilibrium price

There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.

Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?

Consider a market with two firms. In the following table, columns labelled as SS₁ and SS₂ give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.

How does technological progress affect the supply curve of a firm?

If the price of a substitute Y of good X increases, what impact does it have on the equilibrium price and quantity of good X?

How do the equilibrium price and the quantity of a commodity change when the price of input used in its production changes?

The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good.