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All questions of Class 12 Microeconomics for CTET & State TET Exam
Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.- a)Rs. 3,75,000
- b)Rs. 2,75,000
- c)Rs. 3,50,000
- d)Rs. 2,50,000
Correct answer is 'A'. Can you explain this answer?
Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.
a)
Rs. 3,75,000
b)
Rs. 2,75,000
c)
Rs. 3,50,000
d)
Rs. 2,50,000
|
Rithika Khanna answered |
Purchase of investment during the year Rs.3,75,000 i.e. 5,00,000 + 1,37,500 – 2,50,000 – 12,500 = 3,75,000
What is the other name for opportunity cost in economics- a)Total Cost
- b)Marginal cost
- c)Economic cost
- d)Economic problem
Correct answer is option 'C'. Can you explain this answer?
What is the other name for opportunity cost in economics
a)
Total Cost
b)
Marginal cost
c)
Economic cost
d)
Economic problem
|
Aryan Khanna answered |
Economic cost is the combination of losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another.
A budget constraint line is a result of?- a)Market price of commodity X
- b)Market price of commodity Y
- c)Income of the consumer
- d)All of above
Correct answer is option 'A'. Can you explain this answer?
A budget constraint line is a result of?
a)
Market price of commodity X
b)
Market price of commodity Y
c)
Income of the consumer
d)
All of above
|
Nandini Chakraborty answered |
Explanation:
A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
HTML:
Explanation:
A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
HTML:
Explanation:
- A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
- The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
- The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
- However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
- In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
An economy always produces on, but not inside a PPC.
- a)True
- b)False
- c)Occasionally
- d)Can’t say
Correct answer is option 'B'. Can you explain this answer?
An economy always produces on, but not inside a PPC.
a)
True
b)
False
c)
Occasionally
d)
Can’t say
|
|
Alok Mehta answered |
An economy does not always on a ppc . when an economy produces on ppc it mean there is no unemployment and all the resources are fully and being used efficiently but practically these 2 conditions may not apply . if there is unemployment or inefficent use of resources an ecnmy will opreate inside the ppc therefor the above given statement is refuted .
The basic factors of production are land, labour, capital and______
- a)Investment
- b)Entrepreneurship
- c)Resources
- d)Machinery
Correct answer is option 'B'. Can you explain this answer?
The basic factors of production are land, labour, capital and______
a)
Investment
b)
Entrepreneurship
c)
Resources
d)
Machinery
|
|
Alok Mehta answered |
The four factors of production are land, labor, capital goods, and entrepreneurship. They are the inputs needed for supply. They produce all the goods and services in an economy. That's measured by gross domestic product.
The want satisfying power of a commodity is known as:- a)Utility
- b)Consumption
- c)Supply
- d)Demand
Correct answer is option 'A'. Can you explain this answer?
The want satisfying power of a commodity is known as:
a)
Utility
b)
Consumption
c)
Supply
d)
Demand
|
|
Aryan Khanna answered |
The want satisfying power of a commodity is called utility. It is a quality possessed by a commodity or service to satisfy human wants. Utility can also be defined as value-in-use of a commodity because the satisfaction which we get from the consumption of a commodity is its value-in-use.
According to the law of diminishing marginal utility, _________?- a)Additional consumption always yields extra utility
- b)Additional consumption leads to lower average total utility
- c)Additional consumption always yields negative utility
- d)After a point any addition in the consumption causes a reduction in total utility.
Correct answer is option 'D'. Can you explain this answer?
According to the law of diminishing marginal utility, _________?
a)
Additional consumption always yields extra utility
b)
Additional consumption leads to lower average total utility
c)
Additional consumption always yields negative utility
d)
After a point any addition in the consumption causes a reduction in total utility.
|
Priya Patel answered |
According to the Law of Diminishing Marginal Utility, marginal utility of a good diminishes as an individual consumes more units of a good. In other words, as a consumer takes more units of a good, the extra utility or satisfaction that he derives from an extra unit of the good goes on falling.
It should be carefully noted that is the marginal utility and not the total utility than declines with the increase in the consumption of a good. The law of diminishing marginal utility means that the total utility increases but at a decreasing rate.
In the long run TPP changes with the change in which of the following factors- a)Fixed factors
- b)Variable factors
- c)Economic cost
- d)All the factors
Correct answer is option 'D'. Can you explain this answer?
In the long run TPP changes with the change in which of the following factors
a)
Fixed factors
b)
Variable factors
c)
Economic cost
d)
All the factors
|
Ishan Choudhury answered |
In the long run TPP changes with the change in all the factors is the right option because total product can be change in long run production function. After change every situation because in long run production more time should be taken by performer.
Which of the following curve has a negative slope and cannot interest each other?- a)Isoquants
- b)Demand and supply curves
- c)Indifference curves
- d)None of above
Correct answer is option 'C'. Can you explain this answer?
Which of the following curve has a negative slope and cannot interest each other?
a)
Isoquants
b)
Demand and supply curves
c)
Indifference curves
d)
None of above
|
Vikas Kapoor answered |
An indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
____________ is an ideal market?- a)Monopolistic competition
- b)Oligopoly
- c)Perfect competition
- d)Monopoly
Correct answer is option 'C'. Can you explain this answer?
____________ is an ideal market?
a)
Monopolistic competition
b)
Oligopoly
c)
Perfect competition
d)
Monopoly
|
|
Vikas Kapoor answered |
Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.
Can you explain the answer of this question below:This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
- A:
It helps consumers to make choices.
- B:
Utility is always measurable.
- C:
It is a satisfying power of a commodity.
- D:
It is purely a subjective entity.
The answer is B.
This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
It helps consumers to make choices.
Utility is always measurable.
It is a satisfying power of a commodity.
It is purely a subjective entity.
|
Priyanka Ravichandran answered |
B is the correct answer because utility is nothing but human satisfaction so it can't be measured
Cartels exist ina) Monopolyb) Duopolyc) Oligopolyd) Perfect Competition
Correct answer is option 'C'. Can you explain this answer?
Correct answer is option 'C'. Can you explain this answer?
|
Kavita Joshi answered |
A cartel is a grouping of producers that work together to protect their interests. Cartels are created when a few large producers decide to co-operate with respect to aspects of their market. Once
Opportunity cost is the- a)Next best alternative sacrificed
- b)Next best alternative chosen
- c)Next best alternative available
- d)Next best alternative produced
Correct answer is option 'A'. Can you explain this answer?
Opportunity cost is the
a)
Next best alternative sacrificed
b)
Next best alternative chosen
c)
Next best alternative available
d)
Next best alternative produced
|
Knowledge Hub answered |
“Opportunity cost” of a resource, means the value of the next-highest-valued alternative use of that resource.
E.g. you spend time and money going to a movie, you cannot spend that time at home playing video games, and you cannot spend the money on something else. If your next-best alternative to seeing the movie is playing video games at home, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not playing videos game at home.
E.g. you spend time and money going to a movie, you cannot spend that time at home playing video games, and you cannot spend the money on something else. If your next-best alternative to seeing the movie is playing video games at home, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not playing videos game at home.
In short run TPP changes with the change in- a)Marginal Product
- b)Average product
- c)Total Product
- d)Average cost
Correct answer is option 'A'. Can you explain this answer?
In short run TPP changes with the change in
a)
Marginal Product
b)
Average product
c)
Total Product
d)
Average cost
|
|
Vikas Kapoor answered |
Total production product changes with the marginal utility of the product because TP increases at diminishing rate of MP and TP is maximum when MP=0
Can you explain the answer of this question below:Indifference curve represents?
- A:
Four commodities
- B:
Less than two commodities
- C:
Only two commodities
- D:
More than two commodities
The answer is C.
Indifference curve represents?
Four commodities
Less than two commodities
Only two commodities
More than two commodities
|
|
Alok Mehta answered |
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
The coefficient of price elasticity of demand is always- a)Zero
- b)Undefined
- c)Positive
- d)Negative
Correct answer is option 'D'. Can you explain this answer?
The coefficient of price elasticity of demand is always
a)
Zero
b)
Undefined
c)
Positive
d)
Negative
|
Devansh Goyal answered |
Explanation:
The coefficient of price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to changes in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
The coefficient of price elasticity of demand can take on different values depending on the degree of responsiveness of quantity demanded to price changes. However, it is always negative because of the inverse relationship between price and quantity demanded.
Here are some possible values of the coefficient of price elasticity of demand and what they indicate:
- Elastic demand (|PED| > 1): A small percentage change in price leads to a relatively larger percentage change in quantity demanded. Consumers are very responsive to price changes, and the total revenue of the seller decreases when the price is increased.
- Inelastic demand (|PED| < 1):="" a="" large="" percentage="" change="" in="" price="" leads="" to="" a="" relatively="" small="" percentage="" change="" in="" quantity="" demanded.="" consumers="" are="" not="" very="" responsive="" to="" price="" changes,="" and="" the="" total="" revenue="" of="" the="" seller="" increases="" when="" the="" price="" is="" />
- Unit elastic demand (|PED| = 1): A percentage change in price leads to an equal percentage change in quantity demanded. The total revenue of the seller remains constant when the price is changed.
Conclusion:
In conclusion, the coefficient of price elasticity of demand is always negative because of the inverse relationship between price and quantity demanded. The value of this coefficient can vary depending on the degree of responsiveness of quantity demanded to price changes.
The coefficient of price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to changes in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
The coefficient of price elasticity of demand can take on different values depending on the degree of responsiveness of quantity demanded to price changes. However, it is always negative because of the inverse relationship between price and quantity demanded.
Here are some possible values of the coefficient of price elasticity of demand and what they indicate:
- Elastic demand (|PED| > 1): A small percentage change in price leads to a relatively larger percentage change in quantity demanded. Consumers are very responsive to price changes, and the total revenue of the seller decreases when the price is increased.
- Inelastic demand (|PED| < 1):="" a="" large="" percentage="" change="" in="" price="" leads="" to="" a="" relatively="" small="" percentage="" change="" in="" quantity="" demanded.="" consumers="" are="" not="" very="" responsive="" to="" price="" changes,="" and="" the="" total="" revenue="" of="" the="" seller="" increases="" when="" the="" price="" is="" />
- Unit elastic demand (|PED| = 1): A percentage change in price leads to an equal percentage change in quantity demanded. The total revenue of the seller remains constant when the price is changed.
Conclusion:
In conclusion, the coefficient of price elasticity of demand is always negative because of the inverse relationship between price and quantity demanded. The value of this coefficient can vary depending on the degree of responsiveness of quantity demanded to price changes.
Marginal Revenue is- a)Same as total revenue
- b)Addition to the total revenue on the production of an additional unit of Output
- c)Addition to the total revenue on the sale of an additional unit of Output
- d)Additional cost involved in production
Correct answer is option 'C'. Can you explain this answer?
Marginal Revenue is
a)
Same as total revenue
b)
Addition to the total revenue on the production of an additional unit of Output
c)
Addition to the total revenue on the sale of an additional unit of Output
d)
Additional cost involved in production
|
Simran Mishra answered |
**Marginal Revenue: Addition to the total revenue on the sale of an additional unit of Output**
Marginal revenue is a concept used in economics to describe the additional revenue generated from the sale of one additional unit of output or product. It is the change in total revenue that occurs as a result of producing and selling one more unit of a product.
**Explanation:**
Marginal revenue is calculated by dividing the change in total revenue by the change in the quantity of output sold. It represents the increase in revenue that a firm earns when it sells one more unit of output.
To understand this concept, let's consider an example of a company that sells smartphones. Suppose the company sells its smartphones for $500 each, and it sells 1000 units in a month, resulting in a total revenue of $500,000. Now, if the company decides to produce and sell one more smartphone, it would have to adjust its price to attract buyers. Let's assume the company reduces the price to $400 for the additional unit.
In this case, the marginal revenue for the additional unit would be $400 because that is the amount of revenue generated from the sale of that unit. The total revenue after selling 1001 units would be $500,000 + $400 = $500,400. Therefore, the marginal revenue for the additional unit is $400.
It is important to note that marginal revenue can vary depending on the market conditions, demand for the product, and the pricing strategies employed by the firm. In some cases, marginal revenue may be positive, indicating an increase in revenue from selling an additional unit. However, in certain situations, such as when the market is highly competitive, marginal revenue may be negative, indicating a decrease in revenue from selling an additional unit.
Overall, marginal revenue is a crucial concept for businesses as it helps them determine the optimal level of production and pricing strategies to maximize their profits. By understanding the change in revenue associated with each additional unit of output, firms can make informed decisions regarding their production and pricing policies.
Marginal revenue is a concept used in economics to describe the additional revenue generated from the sale of one additional unit of output or product. It is the change in total revenue that occurs as a result of producing and selling one more unit of a product.
**Explanation:**
Marginal revenue is calculated by dividing the change in total revenue by the change in the quantity of output sold. It represents the increase in revenue that a firm earns when it sells one more unit of output.
To understand this concept, let's consider an example of a company that sells smartphones. Suppose the company sells its smartphones for $500 each, and it sells 1000 units in a month, resulting in a total revenue of $500,000. Now, if the company decides to produce and sell one more smartphone, it would have to adjust its price to attract buyers. Let's assume the company reduces the price to $400 for the additional unit.
In this case, the marginal revenue for the additional unit would be $400 because that is the amount of revenue generated from the sale of that unit. The total revenue after selling 1001 units would be $500,000 + $400 = $500,400. Therefore, the marginal revenue for the additional unit is $400.
It is important to note that marginal revenue can vary depending on the market conditions, demand for the product, and the pricing strategies employed by the firm. In some cases, marginal revenue may be positive, indicating an increase in revenue from selling an additional unit. However, in certain situations, such as when the market is highly competitive, marginal revenue may be negative, indicating a decrease in revenue from selling an additional unit.
Overall, marginal revenue is a crucial concept for businesses as it helps them determine the optimal level of production and pricing strategies to maximize their profits. By understanding the change in revenue associated with each additional unit of output, firms can make informed decisions regarding their production and pricing policies.
Deficient demand
- a)Market price is same as the equilibrium price
- b)Market price is higher than the equilibrium price
- c)Market price is lower than the equilibrium price
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Deficient demand
a)
Market price is same as the equilibrium price
b)
Market price is higher than the equilibrium price
c)
Market price is lower than the equilibrium price
d)
None of these
|
Vanshika Agrawal answered |
Crrct answer is B This is so because
Can you explain the answer of this question below:What is called point of satiety?
- A:
The point where marginal utility becomes less than zero
- B:
The point where marginal utility becomes greater than zero
- C:
The point where marginal utility becomes zero.
- D:
None of above
The answer is C.
What is called point of satiety?
The point where marginal utility becomes less than zero
The point where marginal utility becomes greater than zero
The point where marginal utility becomes zero.
None of above
|
Jayant Mishra answered |
Point of Satiety is defined as '' the point where marginal utility of any commodity is zero''. Thus it is a point where satisfaction of any commodity is zero.
Consumer’s surplus is also known as?- a)Buyer’s surplus
- b)Elasticity of demand
- c)Differential surplus
- d) Indifference surplus
Correct answer is option 'A'. Can you explain this answer?
Consumer’s surplus is also known as?
a)
Buyer’s surplus
b)
Elasticity of demand
c)
Differential surplus
d)
Indifference surplus
|
|
Arun Khanna answered |
Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price) it is also known as buyer 's surplus.
Utility is measured in terms of?- a)Centimeter
- b)Seconds
- c)Gram
- d)Utils
Correct answer is option 'D'. Can you explain this answer?
Utility is measured in terms of?
a)
Centimeter
b)
Seconds
c)
Gram
d)
Utils
|
|
Alok Mehta answered |
It can be seen that utility is measured in numbers that are purely cardinal, rather than ordinal. The numbers used to measure utility (often in a unit called the "util") is useful only for comparison.
Under monopoly form of market, TR is maximum when- a)MR is maximum
- b)MR<0
- c)MR>0
- d)MR is zero
Correct answer is option 'D'. Can you explain this answer?
Under monopoly form of market, TR is maximum when
a)
MR is maximum
b)
MR<0
c)
MR>0
d)
MR is zero
|
|
Aryan Khanna answered |
Marginal revenue means additional revenue generate/received from the sale of additional unit of output.In imperfect (monopoly) when TR increases MR decreases , when TR become maximum MR reaches to zero.
Price discrimination can take place only in- a)Perfect competition
- b)Oligopoly
- c)Monopolistic competition
- d)Monopoly
Correct answer is option 'D'. Can you explain this answer?
Price discrimination can take place only in
a)
Perfect competition
b)
Oligopoly
c)
Monopolistic competition
d)
Monopoly
|
|
Pooja Kumari answered |
Monopoly.... ... A discriminating monopoly is a single entity that charges different prices—typically, those that are not associated with the cost to provide the product or service—for its products or services for different consumers. Non-discriminating monopolies, on the other hand, do not engage in such a practice
Under which market condition firms make only Normal Profit in the long run?- a)Oligopoly
- b)Monopoly
- c)Monopolistic competition
- d)Duopoly
Correct answer is option 'C'. Can you explain this answer?
Under which market condition firms make only Normal Profit in the long run?
a)
Oligopoly
b)
Monopoly
c)
Monopolistic competition
d)
Duopoly
|
Nandini Iyer answered |
In the long-run, the demand curve of a firm in a monopolistic competitive
At what point does total utility starts diminishing?- a)When marginal utility remains constant
- b)When marginal utility is increasing
- c) When marginal utility is negative
- d)When marginal utility is negative
Correct answer is option 'D'. Can you explain this answer?
At what point does total utility starts diminishing?
a)
When marginal utility remains constant
b)
When marginal utility is increasing
c)
When marginal utility is negative
d)
When marginal utility is negative
|
|
Kiran Mehta answered |
The law of diminishing marginal utility is a law of economics stating that as a person in creases consumption of a products while keeping consumption of other product costant , there is a decline in the marginal utility that persob derives from consuming each additional unit of product.
The concept of marginal utility was developed by?- a)Paul Samuelson
- b)Alfred Marshall
- c)Hicks & Allen
- d)Robbins
Correct answer is option 'B'. Can you explain this answer?
The concept of marginal utility was developed by?
a)
Paul Samuelson
b)
Alfred Marshall
c)
Hicks & Allen
d)
Robbins
|
|
Aryan Khanna answered |
The concept of marginal utility grew out of attempts by economists to explain the determination of price. The term “marginal utility”, credited to the Austrian economist Friedrich von Wieser by Alfred Marshall, was a translation of Wieser's term “Grenznutzen” (border-use).
Total utility curve:- a)First falls and then rises
- b)Always falls
- c)Always rises
- d)First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
Correct answer is option 'D'. Can you explain this answer?
Total utility curve:
a)
First falls and then rises
b)
Always falls
c)
Always rises
d)
First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
|
|
Ishan Choudhury answered |
MU decrease then TU increases at decreasing rate till MU becomes zero. when MU zero then TU maximum and when MU gets negative TU starts fall
During excess demand- a)Market price is lower than the equilibrium price
- b)Market price is higher than the equilibrium price
- c)Market price is same as the equilibrium price
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
During excess demand
a)
Market price is lower than the equilibrium price
b)
Market price is higher than the equilibrium price
c)
Market price is same as the equilibrium price
d)
None of these
|
|
Arun Khanna answered |
Excess Demand:
Excess demand refers to the situation when aggregate demand (AD) is more than the aggregate supply (AS) corresponding to full employment level of output in the economy. It is the excess of anticipated expenditure over the value of full employment output.
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Theory of Firm Under Perfect Competition of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Condition for producer equilibrium is:- a)TC=TSC
- b)MC=MR
- c)TR=TVC
- d)None of above
Correct answer is 'B'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Theory of Firm Under Perfect Competition of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Condition for producer equilibrium is:
a)
TC=TSC
b)
MC=MR
c)
TR=TVC
d)
None of above
|
Puja Nambiar answered |
Condition for Producer Equilibrium
The producer equilibrium is a situation where a firm is maximizing its profits by producing a level of output where marginal cost (MC) is equal to marginal revenue (MR). In other words, the producer equilibrium is reached when a firm is producing at the point where it is making the highest possible economic profit.
The condition for producer equilibrium is as follows:
MC = MR
Explanation
Marginal cost (MC) is the additional cost of producing one more unit of output. Marginal revenue (MR) is the additional revenue earned by selling one more unit of output. In perfect competition, a firm is a price taker, meaning it cannot influence the market price of the product it sells. Therefore, the price of the product remains constant for the firm.
In perfect competition, the firm's marginal revenue (MR) is equal to the price of the product. Therefore, the condition for producer equilibrium can be rephrased as:
MC = P
where P is the price of the product.
If a firm produces at a level where MC is less than MR, it means that the firm can increase its profits by producing more units of output. Similarly, if a firm produces at a level where MC is greater than MR, it means that the firm can increase its profits by producing fewer units of output. So, the producer equilibrium is reached only when MC is equal to MR, where the firm is producing the level of output that maximizes its profits.
Conclusion
The condition for producer equilibrium is MC = MR, where a firm is producing the level of output that maximizes its profits. In perfect competition, where a firm is a price taker, the condition can be rephrased as MC = P.
The producer equilibrium is a situation where a firm is maximizing its profits by producing a level of output where marginal cost (MC) is equal to marginal revenue (MR). In other words, the producer equilibrium is reached when a firm is producing at the point where it is making the highest possible economic profit.
The condition for producer equilibrium is as follows:
MC = MR
Explanation
Marginal cost (MC) is the additional cost of producing one more unit of output. Marginal revenue (MR) is the additional revenue earned by selling one more unit of output. In perfect competition, a firm is a price taker, meaning it cannot influence the market price of the product it sells. Therefore, the price of the product remains constant for the firm.
In perfect competition, the firm's marginal revenue (MR) is equal to the price of the product. Therefore, the condition for producer equilibrium can be rephrased as:
MC = P
where P is the price of the product.
If a firm produces at a level where MC is less than MR, it means that the firm can increase its profits by producing more units of output. Similarly, if a firm produces at a level where MC is greater than MR, it means that the firm can increase its profits by producing fewer units of output. So, the producer equilibrium is reached only when MC is equal to MR, where the firm is producing the level of output that maximizes its profits.
Conclusion
The condition for producer equilibrium is MC = MR, where a firm is producing the level of output that maximizes its profits. In perfect competition, where a firm is a price taker, the condition can be rephrased as MC = P.
One of the characteristics of economic resource is scarcity. Which is the other?- a)They have alternate uses
- b)They are available in limited quantity
- c)They are in abundance
- d)They are not marketable
Correct answer is option 'A'. Can you explain this answer?
One of the characteristics of economic resource is scarcity. Which is the other?
a)
They have alternate uses
b)
They are available in limited quantity
c)
They are in abundance
d)
They are not marketable
|
|
Priyanka Ravichandran answered |
Economics is scracity because they have alternative uses... It is the important characteristics of economy
The slope of price line throughout its length?- a)Remains the same
- b)Is equal on the other side of the mid points
- c)Differs from point to point
- d)None of above
Correct answer is option 'A'. Can you explain this answer?
The slope of price line throughout its length?
a)
Remains the same
b)
Is equal on the other side of the mid points
c)
Differs from point to point
d)
None of above
|
|
Ishan Choudhury answered |
This is because in perfect competition , price line is a straight line. And the ratio (∆TR/∆Q )That is change in total revenue and change in output is constant.{MR=AR}So slope of a straight line is always constant.
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?- a)Consumer surplus
- b)Price gap
- c)Consumer burden
- d)Optimum price
Correct answer is option 'A'. Can you explain this answer?
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
a)
Consumer surplus
b)
Price gap
c)
Consumer burden
d)
Optimum price
|
|
Devansh Goyal answered |
The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good. The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept. For producers, a surplus can be thought of as profit, because producers usually don't want to produce at a loss. The two together create an economic surplus.
During deficient demand- a)Competition among sellers start
- b)Competition in the government start
- c)Competition among buyers start
- d)Competition among exporters start
Correct answer is option 'A'. Can you explain this answer?
During deficient demand
a)
Competition among sellers start
b)
Competition in the government start
c)
Competition among buyers start
d)
Competition among exporters start
|
Om Desai answered |
Excess Demand. When at the current price level, the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market. Excess demand occurs at a price less than the equilibrium price.
Which of the following utility approach is based on the theory of Alfred Marshall?- a)Independent variable approach
- b)Cardinal utility approach
- c)Ordinal utility approach
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which of the following utility approach is based on the theory of Alfred Marshall?
a)
Independent variable approach
b)
Cardinal utility approach
c)
Ordinal utility approach
d)
None of these
|
|
Ishan Choudhury answered |
The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on. Here, one Util is equivalent to one rupee and the utility of money remains constant.
The firm and the industry are one and the same in:- a)Monopolistic competition
- b)Monopoly
- c)Duopoly
- d)Oligopoly
Correct answer is option 'B'. Can you explain this answer?
The firm and the industry are one and the same in:
a)
Monopolistic competition
b)
Monopoly
c)
Duopoly
d)
Oligopoly
|
|
Priya Patel answered |
A type of market structure, where the firm has absolute power to produce and sell a product or service having no close substitutes. In simple terms, monopolised market is one where there is a single seller, selling a product with no near substitutes to a large number of buyers. As the firm and industry are one and the same thing in the monopoly market, so it is a single-firm industry. There is zero or negative cross elasticity of demand for a monopoly product. Monopoly can be found in public utility services such as telephone, electricity and so on.
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:- a)Increase
- b)Decrease
- c)Remain the same
- d)Become zero
Correct answer is option 'A'. Can you explain this answer?
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
a)
Increase
b)
Decrease
c)
Remain the same
d)
Become zero
|
|
Naina Sharma answered |
Since,the demand of the good is inelastic. So,even if the price will increase the consumer will not decrease the consumption of that good.They will continue to purchase that goods. Due to this the production will go on.And so,the expenditure will increase.
The fixed cost curve is a horizontal straight line to the X axis because- a)It is impossible to change
- b)IT remains same even if fixed factors change
- c)It remains constant in the long run
- d)It remains constant in the short run
Correct answer is option 'D'. Can you explain this answer?
The fixed cost curve is a horizontal straight line to the X axis because
a)
It is impossible to change
b)
IT remains same even if fixed factors change
c)
It remains constant in the long run
d)
It remains constant in the short run
|
Rajat Patel answered |
We know, in the short run, there are some factors which are fixed, while others are variable. Similarly, short run costs are also divided into two kinds of costs:(i) Fixed Cost
The sum total of fixed cost and variable cost is equal to total cost. Let us discuss the short run costs in detail.Units of output are measured along the X-axis and fixed costs along the Y-axis. ... The curve makes an intercept on the Y-axis, which is equal to the fixed cost of Rs. 12. TFC curve is a horizontal straight line parallel to the X-axis because TFC remains same at all levels of output,It remains constant in the short run
Explicit costs are paid to- a)External owners of factors
- b)The tax authorities
- c)Internal owners of factors
- d)The government
Correct answer is option 'A'. Can you explain this answer?
Explicit costs are paid to
a)
External owners of factors
b)
The tax authorities
c)
Internal owners of factors
d)
The government
|
|
Poonam Reddy answered |
Total cost is what the firm pays for producing and selling its products. Explicit costs are normal business expenses that are easy to track and appear in the general ledger. Explicit costs are the only costs necessary to calculate a profit, as they clearly affect a company's profits. Wages that a firm pays its employees or rent that a firm pays for its office are explicit costs.
The general shape of TPP in the short run is- a)V- shaped
- b)Hyperbola
- c)U shaped
- d)Inverse U shaped
Correct answer is option 'D'. Can you explain this answer?
The general shape of TPP in the short run is
a)
V- shaped
b)
Hyperbola
c)
U shaped
d)
Inverse U shaped
|
|
Naina Sharma answered |
Both the Short-run average total cost curve (SRAC) and Long-run average cost curve (LRAC) curves are typically expressed as U-shaped.
The general shape of APP in the short run is- a)U shaped
- b)V- shaped
- c)Hyperbola
- d)Inverse U shaped
Correct answer is option 'D'. Can you explain this answer?
The general shape of APP in the short run is
a)
U shaped
b)
V- shaped
c)
Hyperbola
d)
Inverse U shaped
|
Anisha Chauhan answered |
Explanation:
The short run refers to a period in which at least one factor of production is fixed, while others are variable. In the case of the APP (Average Physical Product), it refers to the average amount of output per unit of input, and it can be calculated by dividing the total output by the total input.
The general shape of the APP in the short run is determined by the law of diminishing returns, which states that as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease, and this will affect the average physical product.
The graph of the APP in the short run will have a U-shaped curve, and it will reach its maximum point when the marginal product is equal to zero. However, the question is asking for the general shape of the APP in the short run, which means that it can also have other shapes, depending on the specific conditions of production.
The correct answer is option 'D', which refers to the inverse U-shaped curve. This shape occurs when the marginal product of the variable input is negative, which means that adding more units of the variable input will decrease the total output. This can happen when there are too many units of the variable input relative to the fixed input, or when the variable input is of poor quality.
In summary, the general shape of the APP in the short run is determined by the law of diminishing returns, and it can be U-shaped, inverse U-shaped, or have other shapes, depending on the specific conditions of production.
The short run refers to a period in which at least one factor of production is fixed, while others are variable. In the case of the APP (Average Physical Product), it refers to the average amount of output per unit of input, and it can be calculated by dividing the total output by the total input.
The general shape of the APP in the short run is determined by the law of diminishing returns, which states that as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease, and this will affect the average physical product.
The graph of the APP in the short run will have a U-shaped curve, and it will reach its maximum point when the marginal product is equal to zero. However, the question is asking for the general shape of the APP in the short run, which means that it can also have other shapes, depending on the specific conditions of production.
The correct answer is option 'D', which refers to the inverse U-shaped curve. This shape occurs when the marginal product of the variable input is negative, which means that adding more units of the variable input will decrease the total output. This can happen when there are too many units of the variable input relative to the fixed input, or when the variable input is of poor quality.
In summary, the general shape of the APP in the short run is determined by the law of diminishing returns, and it can be U-shaped, inverse U-shaped, or have other shapes, depending on the specific conditions of production.
Can you explain the answer of this question below:Unfavorable change in the taste for a good leads to
- A:
Shift of the demand curve of the given good only
- B:
Movement of the demand and supply curves of the given good
- C:
Shift of the demand and supply curves of the given good
- D:
Contraction of the demand for the given good
The answer is D.
Unfavorable change in the taste for a good leads to
Shift of the demand curve of the given good only
Movement of the demand and supply curves of the given good
Shift of the demand and supply curves of the given good
Contraction of the demand for the given good
|
Kusum Chugh answered |
Ans :TASTE AND PREFERENCES --~The demand for a commodity is also affected by the taste and preference of the consumer. ~The demand for a commodity will increase if consumer’s taste changes in favour of the commodity and,~Any UNFAVORABLE CHANGE in taste or PREFERENCE will REDUCE the DEMAND for the COMMODITY.
A PPC is downward sloping and____________ to the origin. Choose the correct option.- a)Convex
- b)Concave
- c)Inverse U shaped
- d)U shaped
Correct answer is option 'B'. Can you explain this answer?
A PPC is downward sloping and____________ to the origin. Choose the correct option.
a)
Convex
b)
Concave
c)
Inverse U shaped
d)
U shaped
|
Leena Hotwani answered |
P.P.C. is concave to the origin due to increase in marginal rate of transformation.
Implicit costs are- a)Total cost
- b)Same as explicit costs
- c)Opportunity costs
- d)Imputed costs
Correct answer is option 'D'. Can you explain this answer?
Implicit costs are
a)
Total cost
b)
Same as explicit costs
c)
Opportunity costs
d)
Imputed costs
|
Yuvraj Bhardwaj answered |
Implicit costs are the cost of self supplied
Normative economics states- a)What ought to be
- b)Central problems of an economy
- c)What was
- d)What is
Correct answer is option 'A'. Can you explain this answer?
Normative economics states
a)
What ought to be
b)
Central problems of an economy
c)
What was
d)
What is
|
|
Priya Patel answered |
Normative economics. Normative economics (as opposed to positive economics) is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.
Equilibrium price may or may not change with shifts in both demand and supply curve.- a)No
- b)Only may change
- c)Yes
- d)May not change only
Correct answer is option 'C'. Can you explain this answer?
Equilibrium price may or may not change with shifts in both demand and supply curve.
a)
No
b)
Only may change
c)
Yes
d)
May not change only
|
|
Om Desai answered |
Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.
Which of the following statements regarding ordinal utility is true?- a)Utility can be measured, but cannot be ranked in order of preferences.
- b)Utility can neither be measured nor can be ranked in order of preferences.
- c)Utility can be measured and can also be ranked in order of preferences.
- d)Utility cannot be measured, but can be ranked in order of preferences.
Correct answer is option 'D'. Can you explain this answer?
Which of the following statements regarding ordinal utility is true?
a)
Utility can be measured, but cannot be ranked in order of preferences.
b)
Utility can neither be measured nor can be ranked in order of preferences.
c)
Utility can be measured and can also be ranked in order of preferences.
d)
Utility cannot be measured, but can be ranked in order of preferences.
|
|
Poonam Reddy answered |
In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
Which of the following is not true?- a)Indifference curves cannot intersect each other
- b)Two indifference curve can be tangent to each other
- c)Indifference curves are convex to the origin
- d)Indifference curves slopes downward to the right
Correct answer is option 'B'. Can you explain this answer?
Which of the following is not true?
a)
Indifference curves cannot intersect each other
b)
Two indifference curve can be tangent to each other
c)
Indifference curves are convex to the origin
d)
Indifference curves slopes downward to the right
|
|
Aryan Khanna answered |
Each indifference curve is convex to the origin, and no two indifference curves ever intersect. Consumers are always assumed to be more satisfied when achieving bundles of goods on higher indifference curves. If a consumer's income increases, the curve will move higher up on a graph because the consumer can now afford more of each type of good.
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