MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — 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

Using the following productions figures of a firm, derive the relationship between total product and marginal product.

Units of Land	1	1	1	1	1	1	1	1	1
Units of Labour	0	1	2	3	4	5	6	7	8
TP	0	4	11	25	37	41	43	43	41

Distinguish between a bar diagram and a histogram.

Discuss some of the uses of diagrams.

Explain the effect of increase in income of the consumer on the demand for a good.

Distinguish between attainable (or feasible) and non-attainable (or non-feasible) combinations of a set of two goods. Draw a suitable diagram.

A perfectly competitive firm faces the market price of ₹20 per unit. Derive its TR schedule for a range of output from 1 to 10 units. What will happen to market price if the firm decides to suspend its production for the time being?

Statistics are not a substitute to common sense. Explain this statement with examples.

Explain producer's equilibrium with the help of a table.