Class 12 Micro Economics - Chapter Non-competitive Markets NCERT Solutions | A monopoly firm has a total fixed cost o

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

If duo poly behavior is one that is described by Cornet, the market demand curve is given by the equation q = 200 - 4p and both the firms have zero costs, find the quantity supplied by each firm in equilibrium and the equilibrium market price. 

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

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

(a) Positively sloped straight line

(b) Horizontal straight line

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

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.

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?

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

What is the value of the MR when the demand curve is elastic?

Explain the concept of a production function

Explain market equilibrium.

Discuss the central problems of an economy.

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?

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

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

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 does the price elasticity of supply mean? How do we measure it?

Can there be some fixed cost in the long run? If not, why?

At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer. 

What is the relation between market price and marginal revenue of a price-taking firm?

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.

How does an increase in the price of an input affect the supply curve of a firm?

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

Suppose the demand and supply curve of commodity XX in a perfectly competitive market are given by:

qD =700 - p

qs = 500 + 3p for p ≥ 15

= 0 or 0 ≤ p <15

Assume that the market consists of identical firms. Identify the reason behind the market supply of commodity X being zero at any price less than Rs 15. What will be the equilibrium price for this commodity? At equilibrium, what quantity of X will be produced?

There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.

Briefly explain the concept of the cost function.