CBSE (Commerce) Class 11CBSE
Share
Notifications

View all notifications

NCERT solutions for Class 12 Economics chapter 4 - The Theory Of The Firm Under Perfect Competition

Introductory Microeconomics - Textbook in Economics for Class - 11

Login
Create free account


      Forgot password?

Chapters

NCERT Introductory Microeconomics - in Economics Class - 11

Introductory Microeconomics - Textbook in Economics for Class - 11 - Shaalaa.com

Chapter 4: The Theory Of The Firm Under Perfect Competition

Exercise

Chapter 4: The Theory Of The Firm Under Perfect Competition Exercise Exercise solutions [Pages 67 - 70]

Exercise | Q 1 | Page 67

What are the characteristics of a perfectly competitive market?

Exercise | Q 1 | Page 67

What are the characteristics of a perfectly competitive market?

Exercise | Q 2 | Page 67

How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?

Exercise | Q 2 | Page 67

How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?

Exercise | Q 3 | Page 67

What is the price line?

Exercise | Q 3 | Page 67

What is the price line?

Exercise | Q 4 | Page 67

Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?

Exercise | Q 4 | Page 67

Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?

Exercise | Q 5 | Page 68

What is the relation between market price and average revenue of a price taking firm?

Exercise | Q 5 | Page 68

What is the relation between market price and average revenue of a price taking firm?

Exercise | Q 6 | Page 68

What is the relation between market price and marginal revenue of a price-taking firm?

Exercise | Q 6 | Page 68

What is the relation between market price and marginal revenue of a price-taking firm?

Exercise | Q 7 | Page 68

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

Exercise | Q 7 | Page 68

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

Exercise | Q 8 | Page 68

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.

Exercise | Q 8 | Page 68

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.

Exercise | Q 9 | Page 68

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.

Exercise | Q 9 | Page 68

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.

Exercise | Q 10 | Page 68

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?

Exercise | Q 10 | Page 68

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?

Exercise | Q 11 | Page 68

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.

Exercise | Q 11 | Page 68

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.

Exercise | Q 12 | Page 68

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

Exercise | Q 12 | Page 68

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

Exercise | Q 13 | Page 68

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

Exercise | Q 13 | Page 68

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

Exercise | Q 14 | Page 68

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

Exercise | Q 14 | Page 68

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

Exercise | Q 15 | Page 68

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

Exercise | Q 15 | Page 68

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

Exercise | Q 16 | Page 68

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

Exercise | Q 16 | Page 68

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

Exercise | Q 17 | Page 68

How does an increase in the number of firms in a market affect the market supply curve?

Exercise | Q 17 | Page 68

How does an increase in the number of firms in a market affect the market supply curve?

Exercise | Q 18 | Page 68

What does the price elasticity of supply mean? How do we measure it?

Exercise | Q 18 | Page 68

What does the price elasticity of supply mean? How do we measure it?

Exercise | Q 19 | Page 68

Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.

Quantity Sold

TR

MR

AR

0

     

1

     

2

     

3

     

4

     

5

     

6

     
Exercise | Q 19 | Page 68

Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.

Quantity Sold

TR

MR

AR

0

     

1

     

2

     

3

     

4

     

5

     

6

     
Exercise | Q 20 | Page 68

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.

Quantity Sold

TR (Rs.)

TC (Rs.)

Profit

0

0

5

 

1

5

7

 

2

10

10

 

3

15

12

 

4

20

15

 

5

25

23

 

6

30

33

 

7

35

40

 
Exercise | Q 20 | Page 68

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.

Quantity Sold

TR (Rs.)

TC (Rs.)

Profit

0

0

5

 

1

5

7

 

2

10

10

 

3

15

12

 

4

20

15

 

5

25

23

 

6

30

33

 

7

35

40

 
Exercise | Q 21 | Page 69

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.

Quantity Sold

TC (Rs.)

0

5

1

15

2

22

3

27

4

31

5

38

6

49

7

63

8

81

9

101

10

123

Exercise | Q 21 | Page 69

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.

Quantity Sold

TC (Rs.)

0

5

1

15

2

22

3

27

4

31

5

38

6

49

7

63

8

81

9

101

10

123

Exercise | Q 22 | Page 69

Consider a market with two firms. The following table shows supply schedules of two firms: SS1 denotes the supply schedule of firm 1 and SS2 denotes the supply schedule of firm 2. Calculate the market supply schedule.

Price (Rs )

SS1 (units)

SS2 (units)

0

0

0

1

0

0

2

0

0

3

1

1

4

2

2

5

3

3

6

4

4

Exercise | Q 22 | Page 69

Consider a market with two firms. The following table shows supply schedules of two firms: SS1 denotes the supply schedule of firm 1 and SS2 denotes the supply schedule of firm 2. Calculate the market supply schedule.

Price (Rs )

SS1 (units)

SS2 (units)

0

0

0

1

0

0

2

0

0

3

1

1

4

2

2

5

3

3

6

4

4

Exercise | Q 23 | Page 69

Consider a market with two firms. In the following table, columns labelled as SS1 and SS2 give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.

Price (Rs )

SS1 (kg)

SS2 (kg)

0

0

0

1

0

0

2

0

0

3

1

0

4

2

0.5

5

3

1

6

4

1.5

7

5

2

8

6

2.5

Exercise | Q 23 | Page 69

Consider a market with two firms. In the following table, columns labelled as SS1 and SS2 give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.

Price (Rs )

SS1 (kg)

SS2 (kg)

0

0

0

1

0

0

2

0

0

3

1

0

4

2

0.5

5

3

1

6

4

1.5

7

5

2

8

6

2.5

Exercise | Q 24 | Page 69

There are three identical firms in a market. The following table shows the supply schedule of firm 1. Calculate the market supply schedule.

Price (Rs )

SS1 (units)

0

0

1

0

2

2

3

4

4

6

5

8

6

10

7

12

8

14

Exercise | Q 24 | Page 69

There are three identical firms in a market. The following table shows the supply schedule of firm 1. Calculate the market supply schedule.

Price (Rs )

SS1 (units)

0

0

1

0

2

2

3

4

4

6

5

8

6

10

7

12

8

14

Exercise | Q 25 | Page 70

A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increase to Rs 15 and the firm now earns a revenue of Rs 150. What is the price elasticity of the firm’s supply curve?

Exercise | Q 25 | Page 70

A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increase to Rs 15 and the firm now earns a revenue of Rs 150. What is the price elasticity of the firm’s supply curve?

Exercise | Q 26 | Page 70

The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output levels of the firm.

Exercise | Q 26 | Page 70

The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output levels of the firm.

Exercise | Q 27 | Page 70

At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30. The price elasticity of the firm’s supply is 1.25. What quantity will the firm supply at the new price?

Exercise | Q 27 | Page 70

At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30. The price elasticity of the firm’s supply is 1.25. What quantity will the firm supply at the new price?

Chapter 4: The Theory Of The Firm Under Perfect Competition

Exercise

NCERT Introductory Microeconomics - in Economics Class - 11

Introductory Microeconomics - Textbook in Economics for Class - 11 - Shaalaa.com

Textbook solutions for Class 12
























NCERT solutions for Class 12 Economics chapter 4 - The Theory Of The Firm Under Perfect Competition

NCERT solutions for Class 12 Economics chapter 4 (The Theory Of The Firm Under Perfect Competition) 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 Introductory Microeconomics - Textbook in Economics for Class - 11 solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. NCERT textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Economics chapter 4 The Theory Of The Firm Under Perfect Competition are Price Elasticity of Supply, Market Supply Curve, Determinants of a Firm’s Supply Curve, Profit Maximisation, Revenue, Price Floor, Price Ceiling, Simple Applications of Demand and Supply, Equilibrium Price, Market Forms - Imperfect Oligopoly, Market Forms - Perfect Oligopoly, Features of Oligopoly, Main Market Forms, Market Forms - Imperfect Competition, Features of Perfect Competition, Effects of Shifts in Demand and Supply, Determination of Market Equilibrium, Market Equilibrium, Meaning and Features of Market, Revenue, Profit Maximisation, Determinants of a Firm’s Supply Curve, Market Supply Curve, Price Elasticity of Supply, Meaning and Features of Market, Market Equilibrium, Determination of Market Equilibrium, Effects of Shifts in Demand and Supply, Features of Perfect Competition, Market Forms - Imperfect Competition, Main Market Forms, Features of Oligopoly, Market Forms - Perfect Oligopoly, Market Forms - Imperfect Oligopoly, Equilibrium Price, Simple Applications of Demand and Supply, Price Ceiling, Price Floor.

Using NCERT Class 12 solutions The Theory Of The Firm Under Perfect Competition exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in NCERT Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer NCERT Textbook Solutions to score more in exam.

Get the free view of chapter 4 The Theory Of The Firm Under Perfect Competition Class 12 extra questions for Economics and can use Shaalaa.com to keep it handy for your exam preparation

S
View in app×