Introduction of Micro-Economics — Economics STD 11 Commerce — Question

At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market? How is equilibrium quantity determined in such a market?

Distinguish between collusive and non-collusive oligopoly.

“MC should be rising at the point of Producer's Equilibrium". Comment.

What do you mean by complements? Give examples of two goods which are complements of each other.

Complete the following table:

Output (Units)	Total Revenue (Rs.)	Marginal Revenue (Rs.)	Average Revenue (Rs.)
1	-	-	8
2	-	4	-
3	12	-	4
4	8	-	2

Define an indifference map. Explain why an indifference curve to the right shows more utility level?

Giving reasons identify the equilibrium level of output and find profit at this output using 'Marginal Cost and Marginal Revenue' approach from the following:

Output (Units)	1	2	3	4	5
Total Cost (Rs.)	7	13	20	28	37
Total Revenue (Rs.)	7	14	21	28	35

What change will take place in marginal product when total product increases at a diminishing rate?

Define marginal utility. State the law of diminishing marginal utiliy.