Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | When does a production function satisfy

What is the total product of input?

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

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

What is the law of diminishing marginal product? 

The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.

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

What are the average fixed cost, average variable cost and average cost of a firm? How are they related? 

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

What are the average fixed cost, average variable cost and average cost of a firm? How are they related? 

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

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?

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

What do you mean by substitutes? Give examples of two goods which are substitutes of each other.

How is the wage rate determined in a perfectly competitive labor market?

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?

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

How are the equilibrium price and quantity affected when?

(a) Both demand and supply curves shift in the same direction?

(b) Demand and supply curves shift in opposite directions?

What do you mean by a normal good?

What do you understand by normative economic analysis?

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

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