SBC KAKKSHA

Date : 29-12-2024 STD 11 Commerce Economics Total Marks : 40

ECONOMICS

* Choose The Right Answer From The Given Options.[1 Marks Each] [6]

1. When total product is 100 units and units of variable factor are 4, average
product will be:
(A) 25 (B) 400 (C) 96 (D) 104
2. What happens to ATC when MC > ATC?
(A) ATC will rise (B) ATC will fall
(C) ATC will remain constant (D) None of these
3. TC increases at an increasing rate when MC is:
(A) constant (B) increasing (C) decreasing (D) negative
4. Which of the following indicates fixed cost?
(A) Electricity bill (B) Expenses on raw material
(C) Wages of daily workers (D) Interest on fixed capital
5. Increase in MR is the rate at which TR:
(A) increases (B) diminishes
(C) remains constant (D) none of these

6. Select the correct equation:

(A) T R = ΣAR (B) M R = ΔT R

ΔQ

(C) T R = AR
(D) AR = T R× Total Output
Total Output

* Fill In The Blanks With Correct Alternative.[1 Marks Each] [2]

7. TC is the summation of ____________.

8. When more output is sold by reducing the prices, AR _____________ MR.

* a statement of Assertion (A) is followed by a statement of Reason (R). [3]

Choose the correct option.

9. In the following questions (1-2), two statements are given. Read the statements
carefully and choose the correct alternative among those given below:
Alternatives:
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false

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 Statement 1: Variable cost does not influence MC.
Statement 2: Marginal cost is an inverse U-shaped curve.
10. In the following questions (1-2), two statements are given. Read the statements
carefully and choose the correct alternative among those given below:
Alternatives:
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Statement 1: When average revenue is diminishing, it is greater than marginal
revenue.
Statement 2: MR can be negative but not AR.
11. Statement 1: MR = MC is a necessary condition for producer's equilibrium.
Statement 2: Equilibrium always refers to a situation when profits are
maximised.
(A) Both the statements are true
(B) Both the statements are false
(C) Statement 1 is true and Statement 2 is false
(D) Statement 2 is true and Statement 1 is false

* Given Section consists of questions of 3 marks each. [15]

12. Let the production function of a firm be:

2 2
Q = 2L K

Find out the maximum possible output that the firm can produce with 5 units of
L and 2 units of K. What is the maximum possible output that the firm can
produce with zero unit of L and 10 units of K?
13. Complete the following table:
Total Cost Average Variable Cost Marginal Cost
Output (Units)
(₹) (₹) (₹)
0 60 - -
1 140 - -
2 190 - -
3 240 - -
4 300 - -
14. Complete the following table:
Units Sold Total Revenue (₹) Average Revenue (₹) Marginal Revenue (₹)
1 20 - -
2 - 18 -
3 - - 12

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 4 56 - -
5 - - 4
6 - - 0
15. Compute the total revenue, marginal revenue and average revenue schedules in
the following table. Market price of each unit of the good is ₹10.
Quantity Sold TR MR AR
0
1
2
3
4
5
6
16. Complete the following table:
Marginal Cost
Output (Units) Total Revenue (₹)
(₹)
1 14 15

2 30 12
3 44 9
4 48 5
5 52 6

* Given Section consists of questions of 4 marks each. [8]

17. Explain the concept of variable cost with the help of a table and diagram.
18. The following table shows the total revenue and total cost schedules of a
competitive firm. Calculate the profit at each output level. Determine also the
market price of the good.
Quantity
TR (₹) TC (₹) Profit (₹)
Sold
0 0 5

1 5 7

2 10 10

3 15 12

4 20 15
5 25 23
6 30 33
 7 35 40

* Given Section consists of questions of 6 marks each. [6]

19. Explain the average and marginal revenue curves of a firm under perfect
competition.
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