MICROECONOMICS CH : 13 MARKET EQUILIBRIUM UNDER PERFECT COMPETITION AND EFFECTS OF SHIFTS IN DEMAND AND SUPPLY — Economics STD 11 Commerce — Question

Owing to a host of initiatives taken by our government like improving Ease of Doing Business, FDI Policy reforms, etc., the flow of foreign capital to India has increased.

When law of diminishing returns is a universal law, why is AP found to be much higher in developed economies like of US than in less developed economies like of India? Give two reasons.

How is the market demand curve derived from the individual demand curves?

Complete the table given below by filling up the missing values:

Possibilities	Good-X (Units)	Good-Y (Units)	Marginal Opportunity Cost (MOC)
A	0	20	__
B	1	__	2Y: 1X
C	2	14	__
D	3	8	__
E	4	__	8Y: 1X

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?

How does an increase in the number of firms in a market affect the market supply curve?

Discuss the central problems of an economy.

What do you understand by positive economic analysis?
[Hint: Positive economic analysis is that branch of economics which deals with such issues which are verifiable.]

Can TP ever fall when more and more of the variable factor is combined with the fixed factor?