Skip to main content

🎓 New resources added daily! Join over 50,000 students using Padandas

Draw a production possibility curve and show the efficient and inefficient combinations of production of an economy on the curve?

Draw a production possibility curve and show the efficient and inefficient combinations of production of an economy on the curve?

(उत्पादन सम्भाव्यता वक्रको रेखाचित्र बनाउनुहोस् र एउटा अर्थतन्त्रको कुशल र अकुशल उत्पादन संयोगहरूलाई रेखाचित्रमा देखाउनुहोस् ।)

Solution

The production possibility curve (PPC) shows the maximum combinations of two goods an economy can produce with its given resources and technology. Points on the curve are efficient, points inside it are inefficient, and points outside it cannot be reached.

Production possibility curve showing efficient and inefficient combinations

Efficient combinations (A to F): every point on the curve uses all resources fully and efficiently. For example, at C the economy produces 2 units of X and 12 units of Y. More of one good can be produced only by giving up some of the other.

Inefficient combination (G): a point inside the curve means resources are unemployed or underused, so the economy could produce more of both goods. Point H, outside the curve, cannot be reached with the present resources and technology.

Explore more questions

  1. 1.

    Critically analyze the Loanable Fund Theory of interest.

    (ब्याजको ऋण योग्य कोषको सिद्धान्तको आलोचनात्मक विश्लेषण गर्नुहोस् ।)

    Asked in 2082 (15 marks)
  2. 2.

    How does a cartel determine the price to maximize the joint profit? Evaluate the advantages and disadvantages of cartel for consumers and producers.

    (संयुक्त नाफा अधिकतम गर्नका लागि कार्टेलले कसरी मूल्य निर्धारण गर्दछ ? उपभोक्ताहरू र उत्पादकहरूको लागि कार्टेलका फाइदाहरू र बेफाइदाहरू मूल्याङ्कन गर्नुहोस् ।)

    Long question Asked in 2082 (15 marks)
  3. 3.

    The production function of Langtang Cheese Pvt. Ltd. is \( Q = 4L + 11L^2 - L^3 \). Complete the following table.

    (लाङटाङ चिज प्रा.लि.को उत्पादन फलन \( Q = 4L + 11L^2 - L^3 \) छ । दिइएको तालिका पूरा गर्नुहोस् ।)

    No. of Labor Total Production Average Production Marginal Production
    0
    1
    2
    3
    4
    5
    6
    7
    8
    9

    a) Analyze the three stages of the Law of Variable proportion for Langtang Cheese Pvt. Ltd. by using above data.

    (माथिको तथ्याङ्क प्रयोग गरी लाङटाङ चिज प्रा.लि.का लागि परिवर्तनशील अनुपातको नियमका तीनवटा चरणहरुको विश्लेषण गर्नुहोस् ।)

    b) Market price of cheese is Rs.1000 per kg. and the wage rate is Rs 34,000 per month. Using data of the second stage of the Law of Variable proportion, find the equilibrium level of labour and output of the cheese.

    (चिजको बजार मूल्य प्रति केजी रु.१००० छ, र ज्याला दर प्रति महिना रु.३४००० छ । परिवर्तनशील अनुपातको नियमको दोस्रो चरणको तथ्याङ्क प्रयोगगरी, श्रम र चिजको उत्पादनको सन्तुलनस्तर पत्ता लगाउनुहोस् ।)

    Long question Asked in 2082 (15 marks)
  4. 4.

    Complete the following table. Graph total revenue, average revenue and marginal revenue curves. Explain the relation of total revenue and marginal revenue with price elasticity of demand.

    (दिइएको तालिका पूरा गर्नुहोस् । कुलआय, औसतआय र सिमान्त आय वक्रहरूको ग्राफ बनाउनुहोस् । मागको मूल्यलोचसँग कुल आय र सिमान्त आयको सम्बन्ध व्याख्या गर्नुहोस् ।)

    Quantity 0 10 20 30 40 50 60 70
    Total revenue 0 60 100 120 120 100 60 0
    Average revenue
    marginal revenue
    Long question Asked in 2082 (10 marks)
  5. 5.

    Why do some long run average cost curves are U-shaped but some are L-shaped? Differentiate with the reasons.

    (किनकुनै दीर्घकालिन औसत लागतवक्र U आकारका हुन्छन् तरकुनै दीर्घकालिनऔसत लागतबक्र L आकारका हुन्छन् ? कारणहरु सहित छुट्ट्याउनुहोस् ।)

    Asked in 2082 (10 marks)
  6. 6.

    Explain the consumer's equilibrium in cardinal approach. Price apple is Rs.20, price of banana is Rs. 10 and the consumer spends whole income Rs.110 on apple and banana. Find the consumer's equilibrium when the marginal utilities (MU) of apple and banana are as follows:

    (संख्यात्मक उपयोगिता विश्लेषण विधिमा उपभोक्ता सन्तुलनको व्याख्या गर्नुहोस् । स्याउको मूल्य रु.२० छ, केराको मूल्य रु. १० छ र उपभोक्ताले आफ्नो सबै आम्दानी रु.११० स्याउ र केरामा खर्च गर्दछ । स्याउ र केराको सिमान्त उपयोगिताहरु निम्नानुसार भएको अवस्थामा उपभोक्ताको सन्तुलन पत्ता लगाउनुहोस् ।)

    Units of consumption 1 2 3 4 5 6 7
    MU of apple 800 700 600 500 400 300 200
    MU of banana 500 450 400 350 300 250 200
    Long question Asked in 2082 (10 marks)