MICROECONOMICS CH : 7 PRODUCTION FUNTION AND RETURNS TO A FACTOR — Economics STD 11 Commerce — Question

Analyse the impact of (i) increase in consumer's income and (ii) increase in number of consumers on market equilibrium. Use a suitable diagram in support of your answer.

Why should a consumer purchase more of a commodity when MU must decline as consumption of the commodity increases?

For those working under MGNREGA, the government has raised minimum employment from 100 to 150 days during an year. How would it impact the actual and potential level of output in the economy?

Why should MC be rising at the point of equilibrium?
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Equilibrium is never struck in a situation of falling MC. Why?

'Make in India' campaign would shift the PPC to the right. How?

What is the likely impact of 'Sarv Shiksha Abhiyan' and 'Skill India Campaign' on PPC of the Indian economy?

Land Acquisition Act in India has led to a considerable rise in compensation to the farmers whose land is acquired for the establishment of industry.
(i) How is it going to impact the cost structure of new industry?
(ii) Will it work as an inducement for the new industry?

2022 Assam floods killed as many as 197 people and caused extensive damage in various districts of the area.

Find the maximum possible output for a firm with zero unit of L and 20 units of K when its production function is: Q = 5L + 2K.

MRS (marginal rate of substitution) along an indifference curve tends to diminish. Comment.