NCERT Solutions for Class 12 Micro Economics

Welcome to the NCERT Solutions for Class 12 Micro Economics. This page offers chapter-wise solutions designed to help students grasp key concepts easily. 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.

• Chapter 1 Introduction to Micro Economics

  Economy refers to the nature and level of economics activities in an area. It shows how the people of the concerned area earn their living. (a) market economies are those economies, in which economic activities are left to the free play of the market forces. (b) centrally planned economies are those economies where the course of economic activities is dictated or decided by some central authority or by the government. (c) Mixed economies share the characteristics of both market and centrally planned economies. The basic economic activities of life are: production, exchange and consumption of goods and services are among the basic economic activities of life. Every society must decide on how to use its scarce resources. Hence, the allocation of scarce resources and distribution of the final goods and services are the final goods and services are the central problems of any economy. In a centrally planned economy, the government or the central authority plans all the important decisions regarding production, exchange and consumption of goods and services are made by the government. It is the value of a factor in its next best alternative use. It shows different combinations of two goods, which can be produced with given resources and technology.

• Chapter 2 Theory of Consumer Behaviour
• Chapter 3 Production and Costs
• Chapter 4 The Theory of the Firm under Perfect Competition

  A market in which we find perfect competition between a large number of buyers and a large number of sellers of a homogeneous product and uniform price is called a perfect competition market. A firm produces and sells a certain amount of a good. It is the difference between revenue and cost. Break even for a firm occurs when it is able to cover its all costs of production. It occurs when a firm is just able to cover its variable costs increasing the loss of fixed cost of production. A producer is said to be in equilibrium when he maximizes his profit or minimizes his losses. It means the amount of a commodity that firms are able and willing to offer for sale in the market in a given period of time and at a given price. It means the amount of a commodity that firms are able and willing to offer for sale in the market in a given period of time and at a given price. Tabular statements of relationship between price and supply of commodities is called supply schedule. Graphical presentation of relationship between price and supply of a commodity is called supply curve. The market supply curve for a commodity shows the relationship between the price of a given commodity and quantity sellers are inclined to sell. It is a measure of the degree of responsiveness of quantity supplied to changes in the commodity own prices.

• Chapter 5 Market Equilibrium
• Chapter 6 Non-competitive Markets