Non-Competitive Markets — Economics STD 12 Humanities & Commerce — Question

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 level of output.

Price (Rs)	TC (Rs)
0 1 2 3 4 5 6 7 8 9 10	5 15 22 27 31 38 49 63 81 101 123

Calculate TC and AVC of a firm at each given level of output from its cost schedule.

Output(Units)	1	2	3	4	5	6
AFC	60	30	20	15	12	10
MC (₹)	32	30	28	30	35	43

Explain the implications of the following features of monopolistic competition.

1. Product differentiation.
2. Free entry or exit of firms.

Discuss the meaning of any two methods of controlling credit which may be adopted by the central bank.

Calculate (a) Gross Domestic Product at Market Price and (b) Factor income from abroad from the following data:

S.No.	Contents	₹ (in crore)
(i)	Gross National Product at Factor Cost	6,150
(ii)	Net Exports	(-)50
(iii)	Compensation of Employees	3,000
(iv)	Rent	800
(v)	Interest	900
(vi)	Profit	1,300
(vii)	Net Indirect Taxes	300
(viii)	Depreciation	400
(ix)	Factor Income to Abroad	80

Price of commodity A is 10 per unit and Total Revenue at this price is ₹ 1600. When its price rises by 20%, Total Revenue increases by ₹ 800. Calculate its Price Elasticity of Supply.

Calculate TR, MR and AR.

Units sold	6	7	8
Price (₹)	5	4	3

Calculate ‘sales’ from the following data:

	( in lakhs)
Subsidies	200
Opening stock	100
Closing stock	600
intermediate consumption	3,000
Consumption of fixed capital	700
Profit	750
Net value added at factor cost	2,000

Explain with the help of diagram the effect of the following changes on the demand of a commodity.

1. An unfavorable change in the taste of the buyer for the commodity.
2. A fall in the income of the buyer, if the commodity is inferior.

Complete the following table:

Output (Units)	TVC (₹)	AVC (₹)	MC (₹)
1	-	12	-
2	20	-	-
-	-	10	10
4	40	-	-