Q7 of 38 Page 1

Given the following schedule, state at which level of output, will the firm be at equilibrium and why.



The firm will be in equilibrium at 4 units of output. Both the conditions are satisfied:


a. MR= MC = 15


b. MR is increasing at the point of equilibrium.


More from this chapter

All 38 →
24

Given the following data, find the values of ‘Government Final Consumption Expenditure’ and ‘Mixed Income of Self-Employed’ :

 5

Explain briefly the central problem of ‘‘How to produce’’.

 10

What is meant by diminishing returns to a factor? Discuss any two reasons behind diminishing returns to a factor.

 17

If marginal propensity to save is 10% and is constant at all levels of income and autonomous consumption is Rs. 200 crores, construct consumption function of the given hypothetical economy.