MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

State the law of supply and the assumption behind it.

What is a cumulative frequency distribution? What are its two types?

Why does the difference between average cost curve and average variable cost curve gradually decline?

What is the relation of TP with MP in different stages of the operation of the law of variable proportions?

From the data given below, calculate Karl Pearson's coefficient of correlation between density of population and death rate by step deviation method.

Region	Area (in sq km)	Population	Death
A	200	40000	480
B	150	75000	1200
C	120	72000	1080
D	80	20000	280

"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." Explain using diagrams.

Read the following information carefully and answer the questions 1-2 on the basis of the same:
In a perfectly competitive market, a firm believes that it can sell as many units of the good as it wants by setting a price less than or equal to the market price. But, if this is the case, surely there is no reason to set a price lower than the market price. In other words, should the firm desire to sell some amount of the good, the price that it sets is exactly equal to the market price. A firm earns revenue by selling the good that it produces in the market. Let the market price of a unit of the good be p. Let q be the quantity of the good produced, and therefore sold, by the firm at price p. Then, total revenue (TR) of the firm is defined as the market price of the good (p) multiplied by the firm's output (q). Hence, TR = p x q.
1. State the relationship between marginal revenue and total revenue.
2. Under perfect competition, rate of TR never declines. Do you agree?"

Prepare the frequency array of marks obtained by 25 students of a class in economics test 20, 15, 20, 30, 40, 25, 25, 30, 40, 20, 35, 35, 50, 15, 50, 25, 40, 40, 30, 50, 25, 30, 30, 15, 45.

Represent the following data by an appropriate bar diagram.
Import and Export of India

Year	Impoet in Current Price (₹ in thousand crore)	Export in Current Price (₹ in thousand crore)
2002-03	139	119
2003-04	154	130
2004-05	176	142
2005-06	149	119