How does an increase in the price of an input affect the supply curve of a firm

MEDIUM

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 17

How does an increase in the number of firms in a market affect the market supply curve?

EASY

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 18

What does the price elasticity of supply mean? How do we measure it?

HARD

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 19

Compute the total revenue, marginal revenue, and average revenue schedules in the following table. The Market price of each unit of the good is Rs $10$ .

Quantity Sold	TR	MR	AR
$0$
$1$
$2$
$3$
$4$
$5$
$6$

HARD

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 20

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 Sold	TR (Rs)	TC (Rs)	Profit
$0$	$0$	$5$
$1$	$5$	$7$
$2$	$10$	$10$
$3$	$15$	$12$
$4$	$20$	$15$
$5$	$25$	$23$
$6$	$30$	$33$
$7$	$35$	$40$

HARD

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 21

The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is Rs $10$ . Calculate the profit at each output level. Find the profit-maximizing level of output.

Output	TC (Rs)
$0$	$5$
$1$	$15$
$2$	$22$
$3$	$27$
$4$	$31$
$5$	$38$
$6$	$49$
$7$	$63$
$8$	$81$
$9$	$101$
$10$	$123$

HARD

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 22

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

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

HARD

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 23

Consider a market with two firms. In the following table, columns labeled as SS $1$ and SS $2$ give the supply schedules of firm $1$ and firm $2$ respectively. Compute the market supply schedule.

Price (Rs)	SS $1$ (kg)	SS $2$ (kg)
$0$	$0$	$0$
$1$	$0$	$0$
$2$	$0$	$0$
$3$	$1$	$0$
$4$	$2$	$0.5$
$5$	$3$	$1$
$6$	$4$	$1.5$
$7$	$5$	$2$
$8$	$6$	$2.5$

HARD

12th CBSE

IMPORTANT

Introductory Microeconomics>Chapter 4 - The Theory of the Firm Under Perfect Competition>Q 24

There are three identical firms in the market. The following table shows the supply schedule of the firm
Compute the market supply schedule.

Price (Rs)	SS $1$ (units)
$0$	$0$
$1$	$0$
$2$	$2$
$3$	$4$
$4$	$6$
$5$	$8$
$6$	$10$
$7$	$12$
$8$	$14$

How does an increase in the price of an input affect the supply curve of a firm?

Important Questions on The Theory of the Firm Under Perfect Competition

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