Non-Competitive Markets — Economics STD 11 Commerce — Question

Given below is the cost schedule of a firm. Its average fixed cost is Rs. 20 when it produces 3 units.

Output (units)	1	2	3
Average variable cost (Rs.)	30	28	32

Calculate its marginal cost and average total cost at each given level of output.

Explain the relationship between AP and MP.

Price elasticity of demand of a good is (-)1. When its price per unit falls by one rupee, its demand rises from 16 to 18 units. Calculate the price before change.

In what circumstances may the production possibilities frontier shift away from the origin? Explain.

Explain the relationship between Total Product, Average Product.

Ice cream is sold for ₹ 30. Lakshmi who loves eating ice cream, has already eaten 3 ice creams. Her marginal utility from eating 3 ice cream is 90. Suppose, for her, MU of one rupee is 3. should she eat more ice creams or stop?

Explain the situation of zero elasticity of supply with the help of a diagram.

Distinguish between explicit costs and implicit costs. Give examples.

Explain the implication of 'perfect knowledge about market' under perfect competition.

A monopoly firm has a total fixed cost of Rs. 100 and has the following demand schedule:

Quantity	1	2	3	4	5	6	7	8	9	10
Price	100	90	80	70	60	50	40	30	20	10

Find the short run equilibrium quantity, price and total profit. What would be the equilibrium in the long run? In case the total cost was Rs. 1000, describe the equilibrium in the short run and in the long run.