Class 12 Micro Economics The Theory of the Firm under Perfect Competition: NCERT Solutions for Question 23
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.
| Price (Rs.) | SS1 (kg) | SS2 (kg) |
|---|---|---|
| 0 1 2 3 4 5 6 7 8 |
0 0 0 1 2 3 4 5 6 |
0 0 0 0 0.5 1 1.5 2 2.5 |
| Price | SS1 (kg) | SS2 (kg) | Market Supply = SS1 + SS2 |
|---|---|---|---|
| 0 | 0 | 0 | 0 + 0 = 0 |
| 1 | 0 | 0 | 0 + 0 = 0 |
| 2 | 0 | 0 | 0 + 0 = 0 |
| 3 | 1 | 0 | 1 + 0 = 1 |
| 4 | 2 | 0.5 | 2 + 0.5 = 2.5 |
| 5 | 3 | 1 | 3 + 1 = 4 |
| 6 | 4 | 1.5 | 4 + 1.5 = 5.5 |
| 7 | 5 | 2 | 5 + 2 = 7 |
| 8 | 6 | 2.5 | 6 + 2.5 = 8.5 |
Popular Questions of Class 12 Micro Economics
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What is the supply curve of a firm in the long run?
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The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output levels of the firm.
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A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increases to Rs 15 and the firm now earns a revenue of Rs 150. What is the price elasticity of the firm’s supply curve?
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How does the imposition of a unit tax affect the supply curve of a firm?
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Distinguish between a centrally planned economy and a market economy.
- Q:-
A consumer wants to consume two goods. The prices of the two goods are Rs 4
and Rs 5 respectively. The consumer’s income is Rs 20.
(i) Write down the equation of the budget line.
(ii) How much of good 1 can the consumer consume if she spends her entire
income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on
that good?
(iv) What is the slope of the budget line?
Questions 5, 6 and 7 are related to question 4. - Q:-
What is budget line?
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Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
- Q:-
Suppose there are 20 consumers for a good and they have identical demand functions:
d(p)=10–3pd(p)=10–3p for any price less than or equal to 103103 and d1(p)=0d1(p)=0 at any price greater than 103.
- Q:-
What is the total product of input?
Recently Viewed Questions of Class 12 Micro Economics
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How are equilibrium price and quantity affected when income of the consumers
a) Increase
b) Decrease
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i. Above the equilibrium price
Ii. Below the equilibrium price
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Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?
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What is the value of the MR when the demand curve is elastic?
- Q:-
Suppose a consumer wants to consume two goods which are available only in
integer units. The two goods are equally priced at Rs 10 and the consumer’s
income is Rs 40.
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to the consumer, identify those which cost her exactly Rs 40.
- NCERT Chapter