MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — Economics STD 11 Commerce — Question

Give the differences between diagrams and graphs.

Explain the concept of fixed cost with the help of a table and diagram.

What is meant by increasing returns to a factor? What leads to increasing returns to a factor?

Class Interval	1-0	6-10	11-15	16-20	21-25
Number of Workers	10	15	20	25	30

The total utility schedule of individual 'A' is given below. Derive the marginal utility schedule.

Units Consumed	0	1	2	3	4	5
Total Utility	0	15	27	38	48	55

Explain the concepts of
i. Marginal Rate of Substitution (MRS),
ii. Budget line, with the help of numerical examples.

Draw straight line supply curves with price elasticity of supply equal to (i) one, (ii) less than one, (iii) more than one, (iv) infinity, and (v) zero.

Draw a diagram showing TVC in terms of the area under MC curve.

A consumer wants to consume two goods. The prices of the goods are ₹4 and ₹5 respectively. The consumer's income is ₹20.
(i) Write down the equation of the budget line.
(ii) How much of Good-1 can the consumer consume if she spends her entire income on that good?
(iii) How much of Good-2 can she consume if she spends her entire income on that good?
(iv) What is the slope of the budget line?