Commerce (English Medium) Class 12 - CBSE Question Bank Solutions for Economics

Define production function.

Distinguish between short-run and long-run production functions.

Give one example of negative externalities.

Giving reasons classify the following into intermediate products and final products:

(i) Furniture purchased by a school. 

Giving reasons classify the following into intermediate products and final products 

Chalks, dusters, etc, purchased by a school. 

Explain the concept of a production function.

A monopoly firm has a total fixed cost of Rs 100 and has the following demand schedule:

Findthe short run equilibrium quantity, price and total profit. What would be the equilibrium in the long run? In case the total cost is Rs 1000, describe the equilibrium in the short run and in the long run.

If the monopolist firm of Exercise 3, was a public sector firm. The government set a rule for its manager to accept the government fixed price as given (i.e. to be a price taker and therefore behave as a firm in a perfectly competitive market). And the government decide to set the price so that demand and supply in the market are equal. What would be the equilibrium price, quantity and profit in this case?

The market demand curve for a commodity and the total cost for a monopoly firm producing the commodity is given in the schedules below.

Use the information given to calculate the following:

(a) The MR and MC schedules

(b) The quantities for which MR and MC are equal

(c) The equilibrium quantity of output and the equilibrium price of the commodity

(d) The total revenue, total cost and total profit in the equilibrium

Will the monopolist firm continue to produce in the short run if a loss is incurred at the best short run level of output?

Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.

What is the reason for the long run equilibrium of a firm in monopolistic competition to be associated with zero profit?

Let the production function of a firm be `Q=5L^(1/2)K^(1/2)`.

Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K.

Let the production function of a firm be Q = 2L² K².

Find out the maximum possible output that the firm can produce with 5 units of L and 2 units of K. What is the maximum possible output that the firm can produce with zero unit of L and 10 units of K?

Find out the maximum possible output for a firm with zero unit of L and 10 units of K when its production function is Q = 5L = 2K.

Name some modern industries which were in operation in our country at the time of independence.

What was the two-fold motive behind the systematic deindustrialisation effected by the British in pre-independent India?

The traditional handicrafts industries were ruined under the British rule. Do you agree with this view? Give reasons in support of your answer.

Indicate the volume and direction of trade at the time of independence.

Match the following: