Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | When does a production function satisfy
When does a production function satisfy increasing returns to scale?
Increasing returns to scale (IRS) holds when a proportional increase in all the factors of production leads to an increase in the output by more than the proportion. For example, if both the labour and the capital are increased by ‘n’ times, and the resultant increase in the output is more than ‘n’ times, then we say that the production function exhibits IRS.
Algebraically, IRS exists when,
F (nL, nK) > n. f (L, K)
More Questions From Class 12 Micro Economics - Chapter Production and Costs
- Q:-
What is the total product of input?
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When does a production function satisfy decreasing returns to scale?
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Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
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Explain the relationship between the marginal products and the total product of an input.
- Q:-
The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
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What are the average fixed cost, average variable cost and average cost of a firm? How are they related?
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What is the law of diminishing marginal product?
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What do the long-run marginal cost and the average cost curves look like?
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Why is the short-run marginal cost curve 'U'-shaped?
- Q:-
What are the average fixed cost, average variable cost and average cost of a firm? How are they related?
Popular Questions of Class 12 Micro Economics
- Q:-
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?
- Q:-
Explain market equilibrium.
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Discuss the central problems of an economy.
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What are the characteristics of a perfectly competitive market?
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What do you mean by the budget set of a consumer?
- Q:-
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
-
- Q:-
When do we say that there is an excess demand for a commodity in the market?
- Q:-
What do you mean by the production possibilities of an economy?
- Q:-
How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?
- Q:-
What is budget line?
Recently Viewed Questions of Class 12 Micro Economics
- Q:-
Discuss the subject matter of economics.
- Q:-
When do we say that there is an excess supply for a commodity in the market?
- Q:-
What do you understand by positive economic analysis?
- Q:-
The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity are given in the schedules below.
Quantity
0
1
2
3
4
5
6
7
8
Price
52
44
37
31
26
22
19
16
13
Quantity
0
1
2
3
4
5
6
7
8
Price
10
60
90
100
102
105
109
115
125
Use the information given to calculate the following:
(a) The MIR and MC schedules
(b) The quantities for which MIR and MC are equal
(c) The equilibrium quantity of output and the equilibrium price of the commodity
(d) The total revenue, total cost and total profit in the equilibrium
- Q:-
What is the value of the MR when the demand curve is elastic?
- Q:-
Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.
- Q:-
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?
- Q:-
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.
- Q:-
What is the relation between market price and marginal revenue of a price-taking firm?
- Q:-
What do you mean by complements? Give examples of two goods which are complements of each other.
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