MICROECONOMICS CH : 4 CONSUMER'S EQUILIBRIUM INDIFFERENCE CURVE ANALYSIS — Economics STD 11 Commerce — Question

Giving reasons, Identify the equilibrium level of output and find profit at this output using Marginal Cost and Marginal Revenue approach from the following table:

Output (units)	1	2	3	4	5
Total Revenue (Rs.)	10	20	30	40	50
Total Cost (Rs.)	12	22	30	40	52

Construct a frequency polygon with histogram for the following data.

Class Inrercal	Frequency
0-10	4
10-20	6
20-30	7
30-40	14
40-50	16
50-60	14
60-70	8
70-80	6
80-90	5

When the consumer is in equilibrium, MU of commodity-X is 45 and price of commodity-X is ₹9. Calculate the marginal utility of money. (Assuming marginal utility of money for the consumer is constant in equilibrium.)

Explain the effects of the following on demand for a good
i. rise in income
ii. rise in prices of related goods

As a producer, how would you adjust your level of output when MR and MC are not equal? Assume that, the price of your product is constant for you, and the law of variable proportions is operative.

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 different types of non random sampling methods in short.

Explain whether marginal cost can increase when average cost decreases.

What do you mean by mode? Where mode is considered as ill-defined?

Calculate weighted average of price relative index from the following data:

Item	Weight (in %)	Base Year Price (₹)	Current Year Price (₹)
A	40	2	4
B	30	5	6
C	20	4	5
D	10	2	3