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

Explain the central problem of 'choice of technique'.

What is the relation between Good-X and Good-Y in each case, if with fall in the price of Good-X demand for Good-Y (i) rises, and (ii) falls? Give reason.

Calculate Laspeyre's price index number from the following data.

Commodity	Price		Quantity Bought
	2014	2015	2014	2015
X	50	52	10	12
Y	7	9	3	4
Z	3	5	7	7

Distinguish between 'change in demand' and 'change in quantity demanded'. ### Distinguish between 'movement along a demand curve' and 'shift in demand curve':

Explain the steps involved in construction of a discrete series.

From the following total cost and total revenue schedule of a firm, find out the level of output, using marginal cost and marginal revenue approach, at which the firm would be in equilibrium. Give reasons for your answer.

Output (Units)	Total Revenue (₹)	Total Cost (₹)
1	10	8
2	18	15
3	24	21
4	28	25
5	30	33

Explain diagrammatically that total revenue is maximum when marginal revenue is zero.

The following table gives production yield in kg per hectare of wheat of 150 farms in a village. Calculate mean.

Production	50-53	53-56	56-59	59-62	62-65	65-68	68-71	71-74	74-77
No. of farms	3	8	14	30	36	28	16	10	5

Why does demand curve of a normal good slope downward from left to right?