Welcome to the NCERT Solutions for Class 12 Micro Economics - Chapter Production and Costs. This page offers a step-by-step solution to the specific question from Exercise 1, Question 20:
At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer.
. With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer.
The SMC curve is a U-shaped curve due to the law of variable proportions. In order to understand the reason behind the U-shape of SMC, let us divide the SMC curve (UAB) into three different parts according to the law of variable proportions:
(a)UA part corresponds to increasing returns to factor.
(b)Minimum point A corresponds to constant returns to factor.
(c) AB part corresponds to decreasing returns to factor. In the initial production stages, the falling part of SMC (UA) is due to application of increasing returns to factor. Then the SMC stops falling and reaches its minimum point due to the existence of constant returns to a factor. After the minimum point A, SMC starts rising (i.e. part of SMC) due to the onset of decreasing returns of variable factor. This trend of SMC curve (initially falling, then becoming constant at its minimum point and then rising) makes it look like the English alphabet - .
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
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Welcome to the NCERT Solutions for Class 12 Micro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 20: At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer.&....
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