Production and cost — Economics STD 11 Commerce — Question

Complete the following table:

Output (Units)	Average Revenue (Rs.)	Marginal Revenue (Rs.)	Total Revenue (Rs.)
1	-	15	-
2	-	-	26
3	11	-	-
4	-	3	-

Distinguish between individual’s demand and market demand. Name the factors affecting demand for a good by an individual.

Total fixed cost is ₹ 90, complete the following table:

Output	1	2	3
MC	10	20	15
AVC (₹)	-	-	-

A consumer spends ₹ 400 on a good priced at ₹ 8 per unit. When its price rises by 25 percent, the consumer spends ₹ 500 on the good. Calculate the price elasticity of demand by the Percentage method.

Explain the causes of a leftward shift in demand curve of a commodity.

State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour.

Explain consumer's equilibrium in case of a single commodity with the help of a utility schedule. State condition of consumer equilibrium in case of a single commodity.
OR
There is given the market price of a piece of goods, how does a consumer decides as to how many units of that piece of goods to buy.

OR
How many units of a commodity should a consumer buy to get its maximum utility? Explain with the help of a numerical example.

OR
There is given the price of a good, how does a consumer decide as to how much quantity of that goods to buy?

Define production function. Distinguish between short run and long run production functions.

From the following schedule find out the level of output at which the producer is in equilibrium. Give reasons for your answer.

Output (Units)	Price (Rs.)	Total Cost (Rs.)
1	24	26
2	24	50
3	24	72
4	24	92
5	24	115
6	24	139
7	24	165