MICROECONOMICS CH : 1 ECONOMICS AND ECONOMY — Economics STD 11 Commerce — Question

"Discovery of natural gas in the international market leads to a cut in the petrol and diesel prices." Explain the economic theory to analyse the impact of the statement on the cost of production of the transport firms in India. Also analyse its impact on the cost of transportation.

When do we say there is excess demand for a commodity in the market?

What do the short run marginal cost, average variable cost and short run average cost curves look like?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

Do you agree that an intelligent producer can avoid the occurrence of diminishing returns to a factor even with the existing technology?

A farmer's entire produce of potatoes is destroyed by the wild animals. What impact would it cause on the AR curve of the farmer? Assume perfect competition.

Does production possibility frontier indicate the actual level of output or potential level of output?

Should production be discontinued when AR = AVC?

What do you mean by an 'inferior good'? Give some examples.

FDI not only brings investment in the domestic economy, it also brings new technology. How would the availability of new technology (relating to auto industry) impact the short period production function of a car manufacturer in India?