MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

What do you understand by consumer's equilibrium? Explain consumer's equilibrium in case of a single commodity.

Calculate mean deviation using median and coefficient of mean deviation:

Class:	5-15	15-25	25-35	35-45	45-55
Frequency:	5	4	5	4	2

Define the term correlation. What purpose does it solve?

Calculate the index number for the period year 2008 to 2015, taking 2008 as base year:

Year (₹)	2008	2009	2010	2011	2012	2013	2014	2015
Price (₹)	75	50	65	60	72	90	75	70

The following table gives production yield in kg. per hectare of wheat of 150 farms in a village. Calculate the mean, median and mode values.

Production yield (kg. per hectare)
50-53	53-56	56-59	59-62	62-65	65-68	68-71	71-74	74-77
Number of farms
3	8	14	30	36	28	16	10	5

Describe the various types of production costs. Explain the mutual relationship between average cost and marginal cost.

A firm experiences fixed cost of ₹ 45 and average variable cost as depicted in the table below. Read the table carefully and answer the questions listed below the same:

Output (Units)	AVC (₹)
1	17
2	15
3	14
4	15
5	19
6	29

(i) Using the data given above estimate average fixed cost, average total cost, total cost and marginal cost.
(ii) Plot AVC, ATC, SMC and check whether MC cuts the other two curves from their minimum point or not.
(iii) If the production of the firm was to be increased from 5 to 6 units the short run marginal cost would tend to rise; state whether true or false with a reason.

Present the following data by a percentage sub-divided bar diagram.

Number of Students (in '000)
Subject	2011-12	2012-13
Statistics	25	30
Economics	40	42
History	35	28

Calculate the coefficient of variation for the following data:

weight (kg.):	0-20	20-40	40-60	60-80	80-100
No. of Persons:	81	40	66	49	14

Consider the following two data sets, where values in set A are the daily sales recorded by an ice-cream vendor; values in set B has the daily sales of a big departmental store :

Set A	500	700	1,000
Set B	10,000	12,000	13,000

1. Analyse the data by using absolute measures of dispersion and interpret.
2. Suggest relative counterparts of absolute measures.