Class 12 Micro Economics - Chapter Introduction to Micro Economics NCERT Solutions | What do you understand by positive econo

Distinguish between a centrally planned economy and a market economy.

Distinguish between microeconomics and macroeconomics.

Discuss the subject matter of economics.

What do you mean by the production possibilities of an economy?

What is a production possibility frontier?

What do you understand by normative economic analysis?

Discuss the central problems of an economy.

Explain the concept of a production function

What would be the shape of the demand curve so that the total revenue curve is?

(a) A positively sloped straight line passing through the origin?

(b) A horizontal line?

Explain market equilibrium.

What are the characteristics of a perfectly competitive market?

What do you mean by the budget set of a consumer?

What is the total product of input?

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

When do we say that there is an excess demand for a commodity in the market?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

What is budget line?

What is meant by prices being rigid? How can oligopoly behavior lead to such an outcome? 

Comment on the shape of MR curve in case when TR curve is a

(a) Positively sloped straight line

(b) Horizontal straight line

List the three different ways in which oligopoly firms may have.

A monopoly firm has a total fixed cost of Rs 100 and has the following demand schedule:

Find the short run equilibrium quantity, price and total profit. What would be the equilibrium in the long run? In case the total cost is Rs.1000, describe the equilibrium in the short run and in the long run.

Will the monopolist firm continue to produce in the short run if a loss is incurred at the best short run level of output?

What would be the shape of the demand curve so that the total revenue curve is?

(a) A positively sloped straight line passing through the origin?

(b) A horizontal line?

Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.

How does an increase in the number of firms in a market affect the market supply curve?

If the monopolist firm of Exercise 3 was a public sector firm. The government set a rule for its manager to accept the government fixed price as given (i.e. to be a price taker and therefore behave as a firm in a perfectly competitive market). And the government has decided to set the price so that demand and supply in the market are equal. What would be the equilibrium price, quantity and profit in this case?

The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment.