The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

Explain ‘large number of buyers and sellers' as a feature of perfectly competitive market.
Explain the implications of large number of buyers in a perfectly competitive market.
OR
Explain the implications of large number of sellers in a perfectly competitive market.

What is elasticity of demand?

Does a change in producers' technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve?

Giving reason comment on the shape of Production Possibilities Curve based on the following table:

Good X (Units)	Good Y (Units)
0	10
1	9
2	7
3	4
4	0

What is Marginal Rate of Transformation? Explain with the help of numerical example.

Explain the concept of 'buffer stock' as a tool of price floor.

Define MRS. Explain why an Indifference curve is convex.

Suppose in an economy, only two goods are being produced, i.e. guns and wheat. While due to recession in the neighbour country, there is huge migration of people in the home country. What will the impact of such a movement on the transformation curve of home country (use diagram).

What will be the impact of improvement in technology of good X while deterioration of technology of good Y simultaneously, on the PPC of home country.

Explain the relation between marginal cost and average cost.