MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — Economics STD 11 Commerce — Question

Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?

Electricity tariff is increased for the commercial use. Would it affect fixed cost or variable cost of the industry? Explain with a reason

When diminishing returns are reversed through mechanisation in agriculture, how does it impact the employment of labour?

Fall in price of a commodity always leads to expansion of its demand. Comment.

Define market demand. State the law of demand and the assumption behind it.

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

If there is change in any other determinant of supply (other than own price of the concerned commodity), the supply curve must shift to the right or left. Do you agree? Give reason.

Explain market equilibrium.

Find TP when 5 units of the variable factor are combined with 5 units of the fixed factor and MP remains constant at 10 units.

Suppose there was a 4 per cent decrease in the price of a good, and as a result, the expenditure on the good increased by 2 per cent. What can you say about the elasticity of demand?