CBSE Class 11 Economics Worksheet Set I Solved

SECTION A

1. A firm is at equilibrium when it produces a level of output at which:

(i) Marginal Cost is equal to Marginal Revenue and Marginal cost is diminishing
(ii) Marginal Cost is equal to Marginal Revenue and Marginal cost is increasing.
(iii) Average Revenue is equal to Average Cost and Average cost is increasing
(iv) Average Revenue is equal to Average Cost and Average cost is diminishing

2. Draw a supply curve with price elasticity is infinity. 

3. What could be the percentage change in quantity supplied of a good if its price increases by 10 percent and its elasticity of supply is unitary?

4. How supply of a commodity is influenced by change in prices of inputs in its production. Explain using diagram

5. How many units of a good will a profit maximizing firm produce to be at equilibrium? Explain using diagram

SECTION B

6. Define mode. 

7. Second quartile can also be called as:
(i) Arithmetic Mean
(ii) Median
(iii) Mode
(iv) Range

8. State one demerit of Mode 

9. Calculate lower quartile and upper quartile from the following

Values: 10    18    11    8    20    21    19    17    12    25    22
 
10.Locate mode for the following and verify the result

VALUE POINTS 

1. (i) Marginal Cost is equal to Marginal Revenue and Marginal cost is increasing.

2

3 10% increase 

4 Input price refer to cost of production. Increase in input price will increase Marginal cost of production. MC curve shift up. Same quantity can be produced only at a higher MC. Supply curve shift to left. Increase in input price will increase Marginal cost of production. MC curve shift up. Same quantity can be produced only at a higher MC. Supply curve shift to left.

5 A profit maximizing firm will produce that many numbers of units at which profit is maximum. Profit is maximum when TR-TC is maximum. TR-TC is maximum when two conditions are achieved.

a. MR must be equal to MC at profit maximum output

b. MC must be non diminishing at profit maximum output

If MR>MC, increase in TR is more than increase in TC when firm increases output. Profit is increasing when firm increases output. Firm is not at equilibrium because it wants to increase output.
If MRThis means Firm makes maximum profits when MR=MC. Firm is at equilibrium

At point A MC=MR but MC is falling so that firm is not at equilibrium

At output Q1, MR>MC, so that firm will increase the output 

At output level Q3 Mc>MR, firm will reduce output

At Output Q2 Firm is at equilibrium because MC=MR and MC is falling.

PART B

6 Mode is the value in a series around which maximum number of items are clustered. (any suitable definition)

7 (i) Median

8 Mode is not suitable for further statistical or mathematical analysis

9 Arrange values in ascending order
8,10,11,12,17,18,19,20,21,22,25,
Q1 = (N+1)/4 th item; 11+1/4 = 3rd item; Q1 = 11
Q3 = 3(N+1)/4 th item; 3(11+1)/4; 9th item; Q3 = 21

10 Locate mode for the following and verify the result

Model class 35-40

Mode = l + (fm-f1/2fm-h1-f2) x h
=35 + (180-100)/2x180-100-160 x 5
= 39.
Histogram and location

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