Production and cost — Economics STD 12 Humanities & Commerce — Question

Define cost. State the relation between marginal cost. and average variable cost.

Discuss the relationship between total revenue, average revenue and marginal revenue under perfect competition and monopolistic competition. Use diagrams.

What can be the effect on equilibrium price of a commodity when its demand and supply curves both shift to left simultaneously? Show three effects with the help of diagrams.### When will the equilibrium price of a commodity not change, if its demand and supply both decrease? Explain with the help of a diagram.

What is fiscal deficit? What are its implications?

The price elasticity of demand for a good is – 0.4. If its price increases by 5 percent, by what percentage will its demand fall? Calculate.

Explain how ‘margin requirements’ are helpful in controlling credit creation?

The saving curve of an economy makes a negative intercept of ₹ 20 crore and 10% of additional income is saved. Derive the saving and cunsumtions function.

A consumer spends ₹ 1,000 on a good priced at ₹ 10 per unit. When its price falls by 20 percent, the consumer spends ₹ 800 on the good. Calculate the price elasticity of demand by the Percentage method.

How do changes in cash reserve ratio affect availability of credit? Explain.

OR

Explain the effect of Cash Reserve Ratio (CRR) on credit creation by commercial banks.

Explain the implication of the following: The feature of ‘no close substitutes' under monopoly.