NCERT Solutions for Class 12 Micro Economics Chapter-12 Market Equilibrium with Simple Applications NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain market equilibrium. [1 Mark] Answer: Market equilibrium refers to the situation when market demand is equal to the market supply. Question 2. What will happen if the price prevailing in the market is (i) Above the…
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NCERT Solutions for Class 12 Micro Economics Chapter-11 Non-Competitive Market NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain why the demand curve facing a firm under monopolistic competition is negatively sloped? [3 Marks] Answer: The demand curve of a firm under monopolistic competition is negatively sloped because of product differentiation. The product of the sellers are differentiated…
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NCERT Solutions for Class 12 Micro Economics Chapter-10 Perfect Competition NCERT TEXTBOOK QUESTIONS SOLVED Question 1. What are the Characteristics of a perfectly competitive market? [3 Marks] Answer: Large number of buyers and sellers Homogeneous product Free entry and exit of firms Perfect knowledge about the market Perfect mobility of factors of production Absence of…
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NCERT Solutions for Class 12 Micro Economics Chapter 9 Producer Equilibrium NCERT TEXTBOOK QUESTIONS SOLVED Question 1. What conditions must hold if a profit- maximizing firm produces positive output in a competitive market? Or [6 Marks] Explain the producer’s equilibrium with MR/MC approach (when Price remains constant with the rise in output). Or Explain the…
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NCERT Solutions for Class 12 Micro Economics Chapter 8 Revenue NCERT TEXTBOOK QUESTIONS SOLVED Question 1. How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?[1 Mark] Answer: Total Revenue = Market Price x Quantity sold Question 2. Compute the total revenue, marginal revenue and…
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NCERT Solutions for Class 12 Micro Economics Chapter -7 Supply NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Consider a market with two firms. The following table shows the supply schedules of two firms: the SS1 column gives supply schedule of firm 1 and SS2 column gives supply schedule of firm 2. Compute the market supply schedule.…
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NCERT Solutions for Class 12 Micro Economics Chapter 6 Cost NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Briefly explain the concept of the cost function.[1 Mark] Answer: Cost function shows functional relationship between output and cost of production. It gives the least cost combination of inputs corresponding to different levels of output. Cost function is given as:…
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NCERT Solutions for Class 12 Micro Economics Chapter-5 Production NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain the concept of a production function. [CBSE 2004C, 07, 09C; AI 05, 08, 11] [1 Mark] Answer: The relationship between physical input and physical output of a firm is generally referred to as production function. The general form of production…
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NCERT Solutions for Class 12 Micro Economics Chapter-4 Elasticity of Demand NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Explain price elasticity of demand. Answer: The degree of responsiveness of quantity demanded to changes in price of commodity is known as price elasticity of demand. Question 2. Consider the demand for a good. At price Rs 4, the…
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NCERT Solutions for Class 12 Micro Economics Chapter – 3 Demand NCERT TEXTBOOK QUESTIONS SOLVED Question 1. Suppose there are two consumers in the market for a good and their demand functions are as follows: for any price than less 20, and at any price greater than or equal to 20. for any price less…
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