CBSE Class 12 Economics Previous Year Question Paper 2013
This is the CBSE Class 12 Economics Previous Year Question Paper from 2013, focusing on "Producers Equilibrium". The paper includes 3-mark and 4-mark questions that require students to identify the producer's equilibrium output level using marginal revenue (MR) and marginal cost (MC) schedules, and to explain the conditions for producer's equilibrium with diagrams and numerical examples. The questions assess understanding of the profit-maximisation point where MR equals MC and MC is rising. Solving this board question paper helps students grasp the exam structure, question types, and key concepts in producer's equilibrium, ultimately aiding in better preparation and higher scores for their board exams.
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Quick info
| Board | CBSE |
|---|---|
| Class | 12 |
| Subject | Economics |
| Session | 2013 |
| Language | English |
| Type | Previous Year Question Paper |
| Exam type | Board Exam |
Paper pattern
The paper includes 3-mark and 4-mark questions related to producer's equilibrium.
Topics covered
Paper topics
- Producers Equilibrium
- Marginal Revenue
- Marginal Cost
- Profit Maximisation
Important topics
- Producer's Equilibrium Conditions
- MR=MC Rule
- Diagrammatic Explanation of Producer's Equilibrium
- Numerical Example of Producer's Equilibrium
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Question paper text
Producers Equilibrium
3 Marks Questions
- In the following table, find out the level of output, at which the producer will be
in equilibrium. Give reason for your answer.(All India 2013)
Output (units) 1 3 2 4 5
Marginal Revenue (Rs) 8 8 8 8 8
Marginal Cost (Rs) 10 7 8 8 9
Ans.
Output (Q) (units) Marginal Revenue (MR) (Rs) Marginal Cost (MC) (Rs)
1 8 10
2 8 8
3 8 7
4 8 8
5 8 9
Prod- r is in equilibrium at 4th unit of output.
Reason At an output level, 2nd and 4th, the MR and MC is equal. But the producer is in equilibrium at 4th unit only where MR = MC, i.e. 8 as per the schedule and MC is rising, afterwards.
2. Explain producer's equilibrium with the help of a diagram. (Delhi 2007)
Ans. Producer's equilibrium refers to a situation of profit maximisation. A producer strikes his equilibrium at that level of output, where profit is maximised. It is only when
- MR = MC, and (b) MC is rising, these two conditions are satisfied, then a producer
will reach the point of his equilibrium and maximising his profit.
In the below figure will be the point of equilibrium as if producer produces more, its profit will increase. Hence, he will be in equilibrium only at Q2 level of output.
MC R
Revenue and cost Ρ <math>AR = MR</math> O <math>Q_1</math> <math>Q_2</math> Output (units)
Producer's equilibrium in terms of MR and MC approach
4 Marks Questions
- Explain the conditions of producer's equilibrium with the help of a numerical example.(Delhi 2013)
Ans. Producer's equilibrium refers to a situation, where a producer is producing that level of output, at which its profits are maximum. In other words, it is a situation of profit maximisation.
Following are the two conditions of producer's equilibrium:
- MR = MC (Marginal Revenue = Marginal Cost)
- MC must be rising at the point of equilibrium or MC curve must cut MR curve from below.
Following schedule explains the producer's equilibrium:
Output (Q) (units) Marginal Revenue Marginal Cost (MR in Rs) (MC in Rs) 1 12 15
2 12 12
3 12 10
4 12 9
5 12 8
6 12 7
7 12 8
8 12 9
9 12 10
10 12 12 (Producer equilibrium)
11 12 15
Reason At 2<sup>nd</sup> level of output MR and MC are equal but at 3<sup>nd</sup> level of output MR > MC (12 > 10). Hence, firms will continue production as its profits are not yet maximised. Producer will be in equilibrium at 10th level of output.
Frequently asked questions
What is this document?
This is a CBSE Class 12 Economics Previous Year Question Paper from 2013, focusing on the topic of Producer's Equilibrium.
What is producer's equilibrium?
Producer's equilibrium is the level of output where a producer maximises profit, typically occurring when Marginal Revenue (MR) equals Marginal Cost (MC) and MC is rising.
What types of questions are included?
The paper includes questions requiring the identification of equilibrium output from a table and explanation of equilibrium conditions using diagrams and numerical examples.
How does solving this paper help?
Solving this previous year question paper helps students understand the exam pattern, question difficulty, and key concepts, improving their preparation for the board exams.
What are the key concepts tested?
The key concepts tested are the conditions for producer's equilibrium (MR=MC and rising MC) and their application in practical scenarios.
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