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

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.

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?

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

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

Distinguish between a centrally planned economy and a market economy.

A consumer wants to consume two goods. The prices of the two goods are Rs 4
and Rs 5 respectively. The consumer’s income is Rs 20.
(i) Write down the equation of the budget line.
(ii) How much of good 1 can the consumer consume if she spends her entire
income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on
that good?
(iv) What is the slope of the budget line?
Questions 5, 6 and 7 are related to question 4.

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. 

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

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

What is the total product of input?

What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit?

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

At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer. 

What is the average product of an input? 

Consider a market where there are just two consumers and suppose their demands for the good are given as follows:

Calculate the market demand for the good.

What is the relation between market price and average 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.

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

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.

Suppose the market determined rent for apartments is too high for common people to afford. If the government comes forward to help those seeking apartments on rent by imposing control on rent, what impact will it have on the market for apartments?