The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Consider a market where there are just two consumers and suppose their demands for the good are given as follows:
Calculate the market demand for the good.

p	d1	d2
1 2 3 4 5 6	9 8 7 6 5 4	24 20 18 16 14 12

Total revenue at a price of ₹ 4 per unit of a commodity is ₹ 480. Total revenue increases by ₹ 240 when its price rises by 25 percent. Calculate its price elasticity of supply.

Suppose that the demand curve for the XYZ company slopes downward and to the right. Would you conclude that the firm is a price taker or a price maker? Give reasons.

Explain any two main features of a centrally planned economy.

When the price of a good falls from ₹ 10 to ₹ 8 per unit, its demand rises from 20 units to 24 units. What can you say about price elasticity of demand of the good through the ‘expenditure approach’?

If productivity of labour is 50 units and a firm has 5 workers. Calculate its total productivity.

Distinguish between stocks and flows. Give an example of each.

OR

Distinguish between stock and flow variables with suitable examples.

The balance of trade shows a deficit of ₹ 300 crore. The value of exports is ₹ 500 crore. What is the value of imports?

Increase in per capita real income means increase in per capita availability of goods and services. Does it necessarily mean rise in the welfare of the people of the country? Give any one argument in support of your answer and explain the same.

Explain the meaning of investment multiplier. What can be its minimum value and why?