Short Answer TypeDefine fixed cost. Give an example. Explain with reason the behaviour of Average Fixed Cost as output is increased.
Define marginal product. State the behaviour of marginal product when only one input is increased and other inputs are hold constant.
When price of a commodity falls from Rs 12 per unit to Rs 9 per unit, the producer supplies 75 percent less output. Calculate price elasticity of supply
Long Answer TypeWhy do central problems of an economy arise? Explain the central problem of 'for whom to produce'?
Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.
Explain the implications of the following in a perfectly competitive market
(a) Large number of sellers
(b) Homogeneous products.
Explain the implications of the following in an oligopoly market:
(a) Barriers to entry of new firms
(b) A few or a few big sellers
Short Answer TypeDefine flows.
Flow is a quantity measured over a specified period of time. For example, the amount of interest received against bank deposits. Examples of flow are income, expenditure of money, capital formation, changes in the supply of money in a country and interest on capital
National income is the sum of factor incomes accruing to:(Choose the correct alternative):
(a) Nationals
(b) Economic territory
(c) Residents
(d) Both residents and non-residents
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