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प्रश्न
Normal profits for a firm imply that the firm is breaking even. Explain.
उत्तर
Normal profit is the minimum profit which is required by the organiser to continue the production. This is part of the total cost of production for a firm. The break-even point is the point where TR = TC, i.e., neither loss nor profit. A firm enjoys normal profit when the total revenue of the firm is enough to cover its costs, since normal profit is a part of the total cost.
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संबंधित प्रश्न
Explain the central problem of "choice of technique".
Giving reason comment on the shape of Production Possibilities curve based on the following schedule :
| Good X (units) | Good Y (units) |
| 0 | 10 |
| 1 | 9 |
| 2 | 7 |
| 3 | 4 |
| 4 | 0 |
What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the Production Possibilities curve of the economy and why?
What will likely be the impact of large-scale outflow of foreign capital on Production Possibilities curve of the economy and why?
Giving reason comment on the production possibilities curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 20 |
| 1 | 18 |
| 2 | 14 |
| 3 | 8 |
| 4 | 0 |
Giving reason comment on the shape of Production Possibilities curve based on the following schedule :
| Good X (units | Good Y (units) |
| 0 | 30 |
| 1 | 27 |
| 2 | 21 |
| 3 | 12 |
| 4 | 0 |
What is likely to be the impact of "Make in India" appeal to the foreign investors by the Prime Minister of India, on the production possibilities frontier of India? Explain
Giving reason comment on the shape of Production Possibilities curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 16 |
| 1 | 12 |
| 2 | 8 |
| 3 | 4 |
| 4 | 0 |
What will be the impact of "Education for All campaign" (Sarv Shiksha Abhiyan) on the Production Possibilities Curve of the Indian economy and why?
What will likely be the impact of the large-scale inflow of foreign capital in India on Production Possibilities Curve and why?
Why is Production Possibilities Curve concave? Explain
Why is a production possibilities curve downward sloping? Explain
Explain the central problem of "What is produced and in what quantities.".
In what circumstances may the production possibility frontier shift away from the origin? Explain.
