Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | The following table shows the total cost

What is the total product of input?

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

When does a production function satisfy decreasing returns to scale? 

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

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

What is the law of diminishing marginal product? 

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? 

Briefly explain the concept of the cost function. 

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?

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. 

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

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.

Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?

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

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

How does the budget line change if the consumer’s income increases to Rs 40 but the prices remain unchanged?

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

How is the equilibrium number of firms determined in a market where entry and exit is permitted?

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