Chapters
Chapter 3: Production And Costs
NCERT solutions for Class 12 Economics Introductory Microeconomics Chapter 3 Production And Costs Exercise [Pages 50 - 52]
Explain the concept of a production function.
What is the total product of an input?
What is the average product of an input?
What is the marginal product of an input?
Explain the relationship between the marginal products and the total product of an input.
Explain the concepts of the short run and the long run.
What is the law of diminishing marginal product?
What is the law of variable proportions?
When does a production function satisfy constant returns to scale?
When does a production function satisfy increasing returns to scale?
When does a production function satisfy decreasing returns to scale?
Briefly explain the concept of the cost function.
What are the total fixed cost, total variable cost and total cost of a firm? How are they related?
What are the average fixed cost, average variable cost and average cost of a firm? How are they related?
Can there be some fixed cost in the long run? If not, why?
What does the average fixed cost curve look like? Why does it look so?
What do the short run marginal cost, average variable cost and short run average cost curves look like?
Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
At which point does the SMC curve intersect SAC curve? Give reason in support of your answer.
Why is the short run marginal cost curve ‘U’-shaped?
What do the long run marginal cost and the average cost curves look like?
The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
L |
TP_{L} |
0 |
0 |
1 |
15 |
2 |
35 |
3 |
50 |
4 |
40 |
5 |
48 |
The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment.
L |
AP_{L} |
1 |
2 |
2 |
3 |
3 |
4 |
4 |
4.25 |
5 |
4 |
6 |
3.5 |
The following table gives the marginal product schedule of labour. It is also given that total product of labour is zero at zero level of employment. Calculate the total and average product schedules of labour.
L |
MP_{L} |
1 |
3 |
2 |
5 |
3 |
7 |
4 |
5 |
5 |
3 |
6 |
1 |
The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm?
Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm.
L |
TP_{L} |
0 |
10 |
1 |
30 |
2 |
45 |
3 |
55 |
4 |
70 |
5 |
90 |
6 |
120 |
The following table gives the total cost schedule of a firm. It is also given that the average fixed cost at four units of output is Rs 5/-. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output.
L |
TP_{L} |
1 |
50 |
2 |
65 |
3 |
75 |
4 |
95 |
5 |
130 |
6 |
185 |
A firm’s SMC schedule is shown in the following table. The total fixed cost of the firm is Rs 100/-. Find the TVC, TC, AVC and SAC schedules of the firm.
L |
TP_{L} |
0 |
− |
1 |
500 |
2 |
300 |
3 |
200 |
4 |
300 |
5 |
500 |
6 |
800 |
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 = 2L^{2} K^{2}.
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.
Chapter 3: Production And Costs
NCERT solutions for Class 12 Economics Introductory Microeconomics chapter 3 - Production And Costs
NCERT solutions for Class 12 Economics Introductory Microeconomics chapter 3 (Production And Costs) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE Class 12 Economics Introductory Microeconomics solutions in a manner that help students grasp basic concepts better and faster.
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Concepts covered in Class 12 Economics Introductory Microeconomics chapter 3 Production And Costs are Cost - Fixed Cost, Cost -variable Cost, Cost - Total Cost, Cost - Total Fixed Cost, Cost - Total Variable Cost, Total Product, Average Product, Marginal Product, Relation Between Total, Average and Marginal Product, Law of Variable Proportions, Average and Marginal Physical Products, Returns to a Factor, Basic Concepts of Cost, Cost - Short Run Costs, Total, Average and Marginal Cost, The Law of Diminishing Marginal Product, Shapes of Product Curves, Costs - Long Run Costs, Returns to Scale, Meaning of Production Function, Production Function - Short-run, Production Function - Long-run, Concept of Production, Cost - Average Cost, Cost - Average Fixed Cost, Cost - Average Variable Cost, Cost - Marginal Cost, Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost, Concept of Opportunity Cost, Total, Average and Marginal Revenue, Concept of Producer's Equilibrium, Concept of Supply, Market Supply, Difference Between Stock and Supply, Determinants of Supply, Supply Curve and Schedule, Movements Along and Shifts in Supply Curve, Measurement of Price Elasticity of Supply - Percentage-change Method, Measurement of Price Elasticity of Supply - Geometric Method, Meaning of Production Function, Production Function - Short-run, Production Function - Long-run, Concept of Production, Total Product, Average Product, Marginal Product, Relation Between Total, Average and Marginal Product, Law of Variable Proportions, Average and Marginal Physical Products, Returns to a Factor, Basic Concepts of Cost, Cost - Short Run Costs, Cost - Fixed Cost, Cost -variable Cost, Cost - Total Cost, Cost - Total Fixed Cost, Cost - Total Variable Cost, Cost - Average Cost, Cost - Average Fixed Cost, Cost - Average Variable Cost, Cost - Marginal Cost, Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost, Concept of Opportunity Cost, Total, Average and Marginal Revenue, Concept of Producer's Equilibrium, Concept of Supply, Market Supply, Difference Between Stock and Supply, Determinants of Supply, Supply Curve and Schedule, Movements Along and Shifts in Supply Curve, Measurement of Price Elasticity of Supply - Percentage-change Method, Measurement of Price Elasticity of Supply - Geometric Method, Total, Average and Marginal Cost, The Law of Diminishing Marginal Product, Shapes of Product Curves, Costs - Long Run Costs, Returns to Scale.
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