Production and cost — Economics STD 12 Humanities & Commerce — Question

Explain ‘large number of buyers and sellers' as a feature of perfectly competitive market.### Explain the implications of large number of buyers in a perfectly competitive market.### Explain the implications of large number of sellers in a perfectly competitive market.

Draw Average Revenue and Marginal Revenue curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain.

"An increase in the demand for notebooks raises the quantity of notebooks demanded, but not the quantity supplied." Is this tatement true or false? Explain.

Would the Central Bank need to intervene in managed floating system? Explain why?

Transfer payments refer to payments which are made:

1. Without any exchange of goods and services.
2. To workers on transfer from one job to another.
3. As compensation to employees.
4. None of these.

Explain the effect of increase in income of the consumer on the demand for a good.

Comment on the following statement: “Diminishing returns occur when total output falls as additional units of labour are combined with fixed inputs in the production process."

Give meaning of total product, average product and marginal product.

If a consumption function of a hypothetical economy is given as,
C = 100 + 0.6Y; then

1. What will be the values of marginal propensity to consume and marginal propensity to save for the economy?
2. Write the corresponding saving function.

Explain how rise in income of a consumer affects the demand of a good. Give example.

OR

Explain the effect of rise in a income of a consumer on his demand for a good. Use diagram.

OR

Explain the effects of increase in the income of the buyer of the good 'X' on the demand of X. Use diagram.