Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | What is a production possibility frontie
What is a production possibility frontier?
The production possibility frontier (PPF) refers to a curve that shows various alternative combinations of two goods that can be produced with efficient utilization of the given resources and technology. It is also called the production possibility curve (PPC). All the points lying on the PPC, that is curve AE, are associated with different quantities of good 1 and good 2 produced, by employing the available resources fully and in an efficient manner. While any point lying under the curve, like F, depicts inefficiency or under utilisation of available resources. Whereas any point lying outside the curve, like Z, depicts over utilisation of the available endowment of resources and technology; making it non-feasible.
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Popular Questions of Class 12 Micro Economics
- Q:-
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(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
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What is the total product of input?
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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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- Q:-
When do we say that there is an excess demand for a commodity in the market?
- Q:-
How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?
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Recently Viewed Questions of Class 12 Micro Economics
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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?
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Compute the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
Quantity Sold TR MR AR 0
1
2
3
4
5
6 - Q:-
What is the relation between market price and average revenue of a price-taking firm?
- Q:-
The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
- Q:-
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Find out the maximum possible output for a firm with zero units of L and 10 units of K when its production function is Q = 5L = 2K.
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- Q:-
How are equilibrium price and quantity affected when income of the consumers
a) Increase
b) Decrease
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