MICROECONOMICS CH : 11 THEORY OF SUPPLY — Economics STD 11 Commerce — Question

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

There is always an ideal factor ratio. What happens if this ideal ratio is crossed?

What will happen to equilibrium price and quantity in the above case if demand for software goods in India is perfectly inelastic?

How would you explain a situation when supply of a commodity increases without any increase in price of the commodity?

At the existing level of output, MP = AP = 10 units. Would AP be equal to MP when production is increased and law of variable proportions is in operation?

For those working under MGNREGA, the government has raised minimum employment from 100 to 150 days during an year. How would it impact the actual and potential level of output in the economy?

ATC must fall simply because AFC always falls. Comment.

Marginal cost is always variable cost. Why?

What is firm's price line? What is its shape?