Class 12 Micro Economics - Chapter The Theory of the Firm under Perfect Competition NCERT Solutions | The following table shows the total reve
The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good.
| Quantity Sold | TR (Rs.) | TC (Rs.) | Profit |
|---|---|---|---|
| 0 1 2 3 4 5 6 7 |
0 5 10 15 20 25 30 35 |
5 7 10 12 15 23 33 40 |
| Quantity Sold | TR | TC | Profit | AR = |
|---|---|---|---|---|
| 0 | 0 | 5 | 0 - 5 = -5 | - |
| 1 | 5 | 7 | 5 - 7 = -2 | |
| 2 | 10 | 10 | 10 - 10 = 0 | |
| 3 | 15 | 12 | 15 - 12 = 3 | |
| 4 | 20 | 15 | 20 - 15 = 5 | |
| 5 | 25 | 23 | 25 - 23 = 2 | |
| 6 | 30 | 33 | 30 - 33 = 2 | = 5 |
| 7 | 35 | 40 | 35 - 40 = 5 | = 5 |
More Questions From Class 12 Micro Economics - Chapter The Theory of the Firm under Perfect Competition
- Q:-
The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output levels of the firm.
- Q:-
A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increases to Rs 15 and the firm now earns a revenue of Rs 150. What is the price elasticity of the firm’s supply curve?
- Q:-
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- Q:-
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- Q:-
What is the relation between market price and marginal revenue of a price-taking firm?
- Q:-
How does an increase in the number of firms in a market affect the market supply curve?
- Q:-
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.
Quantity Sold TR MR AR 0
1
2
3
4
5
6 - Q:-
How does an increase in the price of an input affect the supply curve of a firm?
- Q:-
Will a profit-maximising firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.
Popular Questions of Class 12 Micro Economics
- Q:-
Explain the concept of a production function
- Q:-
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(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
- Q:-
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- Q:-
Discuss the central problems of an economy.
- Q:-
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- Q:-
What is the total product of input?
- 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:-
What is budget line?
Recently Viewed Questions of Class 12 Micro Economics
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Explain why the budget line is downward sloping.
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- Q:-
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- Q:-
Why is the short-run marginal cost curve 'U'-shaped?
- 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
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