MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

A firm experiences fixed cost of ₹ 45 and average variable cost as depicted in the table below. Read the table carefully and answer the questions listed below the same:

Output (Units)	AVC (₹)
1	17
2	15
3	14
4	15
5	19
6	29

(i) Using the data given above estimate average fixed cost, average total cost, total cost and marginal cost.
(ii) Plot AVC, ATC, SMC and check whether MC cuts the other two curves from their minimum point or not.
(iii) If the production of the firm was to be increased from 5 to 6 units the short run marginal cost would tend to rise; state whether true or false with a reason.

Give three mathematical properties of Arithmetic Mean. Describe any one by taking hypothetical data.

How is the demand for a commodity affected by changes in the price of related goods? Explain with the help of diagrams.

Answer the following questions
(i) If a product price increases, a family's spending on the product has to increase. Defend or refute.
(ii) The demand for a good double due to 25% fall in its price. Calculate its price elasticity of demand

Direction of export is shown in the following table. Prepare a pie diagram to show the percentage distribution of export.

Cuntry	Export (in %)
USA	25
Japan	15
UK	30
China	20
Others	10

Explain with the help of a diagram the effect of a rightward shift of supply curve of a commodity on its equilibrium price and quantity.

Present the following data on the production of foodgrains in the form of:

1. Sub-divided Bar Diagram.
2. Multiple Bar Diagram.

Production

Year	Wheat	Rice	Gram	Total
2016	30	20	10	60
2017	45	30	15	90

Explain the conditions of producer's equilibrium with the help of a diagram.

Explain the relationship between (i) average cost and marginal cost, & (ii) total cost and marginal cost.

What do you mean by positive and negative correlation?