Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | What do the short-run marginal cost, ave
What do the short-run marginal cost, average variable cost and short-run average cost curves look like?
SMC curve always intersect the AVC curve at its minimum point. This is because to the left of the minimum point of AVC, SMC is below AVC. SMC and AVC both fall but the former falls at a faster rate. At the minimum point K, AVC is equal to SMC. Beyond K, AVC and SMC both rise but the latter rises at a faster rate than the former and also SMC lies above AVC. Therefore, the only point where SMC and AVC are equal is where SMC intersects AVC, i.e., at the minimum point of the AVC curve.
More Questions From Class 12 Micro Economics - Chapter Production and Costs
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What is the total product of input?
- Q:-
Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
- Q:-
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.
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What does the average fixed cost curve look like? Why does it look so?
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When does a production function satisfy decreasing returns to scale?
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Explain the concept of a production function
- Q:-
Explain the relationship between the marginal products and the total product of an input.
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Why is the short-run marginal cost curve 'U'-shaped?
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At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer.
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From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
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Recently Viewed Questions of Class 12 Micro Economics
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Suppose the price elasticity of demand for a good is – 0.2. How will the expenditure on the good be affected if there is a 10 % increase in the price of the good?
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From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:
Quantity
1
2
3
4
5
6
7
8
9
Marginal
Revenue
10
6
2
2
2
0
0
0
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