Production and cost — Economics STD 12 Humanities & Commerce — Question

Why is Production Possibilities Curve concave? Explain.

Complete the following table.

Price (₹)	8	6	4	2
Output (Units)	1	2	3	4
TR(₹)	-	-	-	-
MR (₹)	-	-	-	-

Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs. 50 crores, and MPS is 0.2 and level of income (Y) is Rs. 4000 crores. State whether the economy is in equilibrium or not (cite reasons).

At a price of 40 per unit, the quantity supplied of a commodity is 400 units. When its price falls by 10 percent, its quantity supplied falls by 36 units. Calculate its elasticity of supply. Is its supply elastic?

Calculate average variable cost and marginal cost from the following table:

Units of Output	Total Cost
0	75
1	95
2	110

A producer supplies 80 units of a good at a price of Rs. 10 per unit. Price elasticity of supply is 4. How much will he supply at Rs. 9 per unit?

The following table shows the marginal cost at different levels of output of a firm. Its total fixed cost is ₹ 120.
Find its average total cost and average variable cost at each level of output.

Output (Units)	1	2	3
MC (₹)	40	30	26

The market demand for a good at ₹ 5 per unit is 50 units. Due to increase in price, the market demand falls to 30 units. Find out the new price if the price elasticity of demand is (-)2.

Explain how 'Repo Rate' can be helpful in controlling credit creation.

What is revenue deficit? What are its implications?