MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

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

2022 Assam floods killed as many as 197 people and caused extensive damage in various districts of the area.

If more & more resources are constantly explored and new techniques of production are constantly discovered, don't you think a day will come when our central problems will be solved once for all?

(i) Do you think the actual level of output in the Indian economy is less than its potential level?
(ii) Does it mean that the level of our PPC could be higher than what it is now?

State the condition of consumer's equilibrium.

Utility Analysis studies consumer's equilibrium on the assumption that utility can be expressed in terms of units like 2, 4, 6. Indifference Curve Analysis, on the other hand, assumes that utility cannot be expressed in terms of units; it can at best be compared. Does it mean that consumer's equilibrium (in terms of the consumption of goods X and Y) should be different, using different assumptions?

Under which condition marginal revenue can be negative? Explain with the help of an example.

When price is constant for a firm (as under perfect competition) producer's equilibrium is struck only when commodity price coincides with MC, and MC is rising. Do you agree?

Define marginal rate of transformation.

MRS (marginal rate of substitution) along an indifference curve tends to diminish. Comment.