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

Giving reason comment on the shape of Production Possibilities curve based on the following schedule:

Good X(units)	Good Y(units)
0	20
1	18
2	14
3	8
4	0

Given below is the cost schedule of a firm. Its average fixed cost is Rs. 20 when it produces 3 units.

Output (units)	1	2	3
Average variable cost (Rs.)	30	28	32

Calculate its marginal cost and average total cost at each given level of output.

Explain why public goods must be provided by the government?

An economy is in equilibrium. Calculate Marginal Propensity to Consume:
National income = 1000.
Autonomous consumption expenditure = 200.
Investment expenditure = 100.

Consider a market with two firms. The following table shows the supply schedules of the two firms: the SS1 column gives the supply schedule of firm 1 and the SS2 column gives the supply schedule of firm 2. Compute the market supply schedule.

Price (Rs)	SS1 (units)	SS2 (units)
0 1 2 3 4 5 6	0 0 0 1 2 3 4	0 0 0 1 2 3 4

State any three causes of a rightward shift of supply curve.

In an economy the entire increase in income is saved. What will be the value of multiplier?

With the help of consumption function C = 20 + 0.8Y, calculate savings at an income level of ₹ 500 crore.

At a price of Rs. 5 per unit of commodity A, total revenue is Rs. 800. When its price rises by 20 percent, total revenue increases by Rs. 400. Calculate its price elasticity of supply.

It is given that MPC is 1/3rd of MPS, while consumption at zero level of income is given as ₹ 100 crore. Derive the consumption and saving functions. What does you suggest about this economy?