From the following table, find out the level of output at which the producer will be in equilibrium. Give reasons for your answer. | ||
Output (units) | Marginal Revenue (Rs.) | Marginal Cost (Rs.) |
1 | 8 | 10 |
2 | 8 | 8 |
3 | 8 | 7 |
4 | 8 | 8 |
5 | 8 | 9 |
Why can a firm not earn abnormal profits under perfect competition in the long run? Explain. |
Or |
Why is the demand curve of a firm under monopolistic competition more elastic than under monopoly? Explain. |
Explain the meaning of opportunity cost with the help of production possibility schedule. |
Or |
With the help of suitable example explain the problem of for whom to produce. |
Explain three properties of indifference curves. |
Or |
Explain the conditions of consumer's equilibrium under indifference curve approach. |
Giving reasons, state whether the following statements are true or false: |
(i) Average product will increase only when marginal product increases. |
(ii) With increase in level of output, average fixed cost goes on falling till it reaches zero. |
(iii) Under diminishing returns to a factor, total product continues to increase till marginal product reaches zero. |
Calculate 'Sales' from the following data: | ||
(Rs. in lakhs) | ||
(i) | Subsidies | 200 |
(ii) | Opening stock | 100 |
(iii) | Closing stock | 600 |
(iv) | Intermediate consumption | 3,000 |
(v) | Consumption of fixed capital | 700 |
(vi) | Profit | 750 |
(vii) | Net value added at factor cost | 2,000 |
Distinguish between 'real' gross domestic product and 'nominal' gross domestic product. Which of these is a better index of welfare of the people and why? |
Or |
Distinguish between stocks and flows. Give two examples of each. |
From the data given below about an economy. Calculate (a) investment expenditure and (b) consumption expenditure |
(i) Equilibrium level of income 5000 |
(ii) Autonomous consumption 500 |
(iii) Marginal propensity to consume 0.4 |
You need to login to perform this action.
You will be redirected in
3 sec