Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | What is the total product of input?

Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve? 

Let the production function of a firm be Q=5L1/2K1/2Q=5L1/2K1/2 Find out the maximum possible output that the firm can produce with 100 units of LL and 100 units of KK.

What do the long-run marginal cost and the average cost curves look like? 

What does the average fixed cost curve look like? Why does it look so? 

When does a production function satisfy decreasing returns to scale? 

Explain the relationship between the marginal products and the total product of an input. 

Explain the concept of a production function

Why is the short-run marginal cost curve 'U'-shaped? 

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

What is the law of variable proportions? 

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.

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?

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?

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?

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

Explain through a diagram the effect of a rightward shift of both the demand and supply curves on equilibrium price and quantity.

A shift in demand curve has a larger effect on price and smaller effect on quantity when the number of firms is fixed compared to the situation when free entry and exits is permitted. Explain.

If a consumer has monotonic preferences, can she be indifferent between the
bundles (10, 8) and (8, 6)?

Consider the demand curve D (p) = 10 – 3p. What is the elasticity at price 53?

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

Suppose the market determined rent for apartments is too high for common people to afford. If the government comes forward to help those seeking apartments on rent by imposing control on rent, what impact will it have on the market for apartments?

How will a change in the price of coffee affect the equilibrium price of tea? Explain the effect on equilibrium quantity also through a diagram. 

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.

How does the imposition of a unit tax affect the supply curve of a firm?