Commerce (English Medium) कक्षा १२ - CBSE Question Bank Solutions for Economics

"Many goods and services which may contribute to welfare, but are not included in estimating Gross Domestic Product (GDP)."

Do you agree with the given statement? Give valid reason in support of your answer.

State the meanings of the following:

Externalities

Define variable cost.

Give two examples of variable costs.

Define variable cost.

What conditions must hold if a profit-maximizing firm produces positive output in a competitive market?

Can there be a positive level of output that a profit-maximising firm produces in a competitive market at which market price is not equal to marginal cost? Give an explanation.

Will a profit-maximising firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.

Will a profit-maximising firm in a competitive market produce a positive level of output in the short run if the market price is less than the minimum of AVC?

Will a profit-maximising firm in a competitive market produce a positive level of output in the long run if the market price is less than the minimum of AC? Give an explanation.

The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good.

The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is Rs 10. Calculate the profit at each output level. Find the profit maximising the level of output.

How are the equilibrium price and quantity affected when both demand and supply curves shift in the same direction?

Suppose the demand and supply curves of salt are given by:

q^D = 1,000 − p q^S = 700 + 2p

(a) Find the equilibrium price and quantity.

(b) Now, suppose that the price of an input that used to produce salt has increased so, that the new supply curve is

q^S = 400 +2p

How does the equilibrium price and quantity change? Does the change conform to your expectation?

(c) Suppose the government has imposed a tax of Rs 3 per unit of sale on salt. How does it affect the equilibrium rice quantity?

What is the supply curve of a firm in the short run?

What is the supply curve of a firm in the long run?

How does technological progress affect the supply curve of a firm?

How does the imposition of a unit tax affect the supply curve of a firm?

How does an increase in the price of an input affect the supply curve of a firm?

How are the equilibrium price and quantity affected when demand and supply curves shift in opposite directions?