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

FDI not only brings investment in the domestic economy, it also brings new technology. How would the availability of new technology (relating to auto industry) impact the short period production function of a car manufacturer in India?

"Discovery of natural gas in the international market leads to a cut in the petrol and diesel prices." Explain the economic theory to analyse the impact of the statement on the cost of production of the transport firms in India. Also analyse its impact on the cost of transportation.

What will be the impact of increase in import of software goods to India (assuming domestic supply remains unaffected) on equilibrium price and quantity of software goods in India?

When do we say there is excess supply for a commodity in the market?

What is cross price effect?

Fall in price of a commodity always leads to expansion of its demand. Comment.

Firm's supply curve shows its supply function.' Defend or refute the given statement.

Briefly explain the concept of the cost function.

There is always an ideal factor ratio. What happens if this ideal ratio is crossed?

Perfect competition is no competition. How?