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Short Answer Questions - Producer Behaviour and Supply | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year PDF Download
Short answer questions and Long answer questions
1. What is meant by production?
Ans :- Transformation of Input into Output.
2. What will be MP when TP is maximum?
Ans :- MP will be zero.
3. Define market period, Short run & Long run.
Ans :- Refer time period.
4. Explain the law of variable proportions with the help of a schedule and a diagram.
5. What are the reasons for
a) Increasing returns to a factor
b) Diminishing returns to a factor
c) Negative returns to a factor
6. Explain the difference between MPP & TPP.
Short answers and Long Answer questions:
- What is cost of production?
- Define cost function.
- What are money costs?
- Distinguish between explicit and implicit costs.
- How do you define an opportunity cost?
- What difference you find between fixed and variable costs?
- Why the fixed cost curve is a horizontal straight line to the X axis?
- Why variable costs are variable?
- What is average cost? How do you derive it?
- Explain AVC, AFC & ATC and explain the relationship between these costs.
- Explain the relationship TC, TFC & TVC.
- With a diagram describe the various phases of AC.
- Bring out the relationship between AC & MC
The document Short Answer Questions - Producer Behaviour and Supply | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year is a part of the SSC CGL Course SSC CGL Tier 2 - Study Material, Online Tests, Previous Year.
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FAQs on Short Answer Questions - Producer Behaviour and Supply - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
| 1. What is producer behavior in economics? |  |
| 2. How does supply affect producer behavior? | |
Ans. Supply plays a crucial role in shaping producer behavior. When the supply of a product increases, producers may reduce prices to attract more customers. On the other hand, when the supply decreases, producers may raise prices to maximize profits. Changes in supply also influence the production levels and investment decisions of producers.
| 3. What factors influence producer behavior? | |
Ans. Several factors influence producer behavior, including market demand, production costs, competitors' actions, government regulations, and technological advancements. These factors can affect pricing decisions, production levels, investment choices, and strategic planning of producers.
| 4. How do producers determine the quantity of goods to supply? | |
Ans. Producers determine the quantity of goods to supply by considering factors like production costs, market demand, and profit maximization. They analyze the relationship between price and quantity supplied using concepts like supply curves and elasticity. Producers aim to find the equilibrium point where the quantity supplied matches the demand at the most profitable price.
| 5. How does producer behavior impact the overall market? | |
Ans. Producer behavior significantly impacts the overall market dynamics. When producers adjust their production levels, pricing strategies, and investment decisions, it affects the supply and availability of goods in the market. This, in turn, influences prices, competition, consumer choices, and market equilibrium. Therefore, understanding and analyzing producer behavior is essential for studying and predicting market outcomes.
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