Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Draw the average revenue curve of a firm under (a) monopoly and (b) perfect competition. Explain the difference in these curves, if any.### Why is the average revenue curve of a firm under perfect competition parallel to OX-axis and negatively sloped under monopoly?

“Machine purchased is always a final good.” Do you agree? Give reasons for your answer.

Calculate Net Value Added at factor cost from the following data:

		(Rs. lakhs)
1	Depreciation.	20
2	Intermediate cost.	90
3	Subsidy.	5
4	Sales.	140
5	Exports.	7
6	Change in stock.	(-)10
7	Import of raw materials.	3

What does the average fixed cost curve look like? Why does it look so?

Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?

Consider a market with two firms. The following table shows the supply schedules of the two firms: the SS1 column gives the supply schedule of firm 1 and the SS2 column gives the supply schedule of firm 2. Compute the market supply schedule.

Price (Rs)	SS1 (units)	SS2 (units)
0 1 2 3 4 5 6	0 0 0 1 2 3 4	0 0 0 1 2 3 4

The data below shows the relationship between total output and the amount of labour hired at Papa's Pizza Shop

Number Workers(per day)	Total Product (Pizzas per day)
0	0
1	100
2	200
3	300
4	400
5	500

Does the production function in the above table exhibit diminishing marginal returns? Explain.

‘At the initial stages of production, TVC increases at a diminishing rate'. Justify.

An economy is in equilibrium. Find marginal propensity to consume:
Autonomous consumption expenditure = 100
Investment expenditure = 100
National Income = 2000