Class 12 Micro Economics - Chapter The Theory of the Firm under Perfect Competition NCERT Solutions | The market price of a good changes from

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?

What is the supply curve of a firm in the long run?

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

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

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

How does an increase in the number of firms in a market affect the market supply curve?

How does an increase in the price of an input affect the supply curve of a firm?

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.

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.

How does technological progress affect the supply curve of a firm?

Explain the concept of a production function

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 do you mean by the budget set of a consumer?

What is the total product of input?

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?

What is budget line?

Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?

Discuss the central problems of an economy.

What do the short-run marginal cost, average variable cost and short-run average cost curves look like? 

When does a production function satisfy constant returns to scale?

If the price of a substitute Y of good X increases, what impact does it have on the equilibrium price and quantity of good X?

What do you understand by positive economic analysis?

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

What do you mean by the budget set of a consumer?

What do you mean by a normal good?

What is the law of variable proportions?