Production and cost — Economics STD 11 Commerce — Question

A consumer buys 27 units of a good at a price of ₹ 10 per unit. When the price falls to ₹ 9 per unit, the demand rises to 30 units. What can you say about price elasticity of demand of the good through the ‘expenditure approach’?

Define cost. State the relation between Marginal Cost and Average Cost.
OR
Explain the relation between AC and MC.

Explain the problem of ‘for whom to produce with the help of suitable example'.
OR
Explain the central problem of “for whom to produce”.

The sales of a balloon seller in seven days of a week are as given below.

Days	Mon	Tue	Wed	Thu	Fri	Sat	Sun
Sales (in Rs.)	100	150	125	140	160	200	250

If the profit is 20% of sales, then find his average profit per day.

State the conditions for consumer's equilibrium given by the utility approach (in case of one and two commodities).

A producer starts a business by investing his own savings and hiring the labour. Identify implicit and explicit costs from this information. Explain.

Define total fixed cost (Supplement/ Indirect/ overhead cost).
OR
Define fixed cost.

OR
What is meant by fixed (supplementary) costs of a firm? Give examples.

What is meant by inferior goods in economics?

State any three factors that affect the price elasticity of demand of a commodity.

As a result of fall in price of the commodity by 10%, the quantity supplied also falls by 15%. Comment on PES.