MICROECONOMICS CH : 9 CONCEPT OF REVENUE — Economics STD 11 Commerce — Question

Find out the average revenue and marginal revenue on the basis of the following data:

Units of Production	Total Revenue (₹)	Average Revenue (₹)	Marginal Revenue (₹)
1	20
2	36
3	48
4	56
5	60
6	60
7	56

Define elasticity of demand. Explain any one method of measuring it.

Calculate weighted aggregative price index with Laspeyre's method from following data.

Items	Base year Price	Current Year Price	Base year Quantity	Current Year Quantity
A	40	60	12	15
B	20	24	8	10
C	50	55	12	15
D	50	55	12	15
E	30	42	20	22

Explain marginal cost with the help of a table and diagram.

Following information is given about a firm:

Output (Units)	0	1	2	3	4	5	6
Total Cost (₹)	150	300	420	600	790	1,000	1,260

From this information, find out:
(i) AFC of producing 3 units,
(ii) AVC of producing 4 units,
(iii) Least AC level of output,
(iv) MC of producing 5th unit, and
(v) TVC of producing 6 units.

Read the following text carefully and answer the questions 1-2 on the basis of the same:
In a centrally planned economy, the government or the central authority plans all the important activities in the economy. The central authority may try to achieve a particular allocation of resources and a consequent distribution of the final combination of goods and services which is thought to be desirable for society as a whole. For example, if it is found that a good or service which is very important for the prosperity and well-being of the economy as a whole is not produced in adequate amount by the individuals on their own, the government might try to induce the individuals to produce adequate amount of such a good or service or, alternatively, the government may itself decide to produce the good or service in question.

1. State one difference between centrally planned economy and market economy.
2. State three characteristics of a centrally planned economy.

What is procedure of drawing histogram.

Explain the relationship between marginal revenue and total revenue.

What is meant by price elasticity of demand? How is it measured?