iii) Prakarana
Prakaranapada (IAST: Prakaraṇapāda-śāstra), composed by Vasumitra, is one of the seven Sarvastivada Abhidharma Buddhist scriptures.The Chinese was translated by Xuanzang as: T26, No. 1542, , in 18 fascicles; with another partial translation by Gunabhadra and Bodhiyasa: T26, No. 1541, in 12 fascicles. Its commentary the Panca-vastu-vibhasa T 1555) by Dharmatrata, was also translated by Xuanzang.
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Consider Figure 1 below where MC, ATC, AVC, D, and AR represent the marginal cost, average total cost, average variable cost, demand, and average revenue curve respectively under a perfect competition. Based on the figure, answer the following questions: 10
(i) What is the profit maximising level of output for this firm in the short-run? At this quantity, what is the marginal revenue?
(ii) How much is the total cost for this firm in the short-run equilibrium?
(iii) In the short run, is the firm making economic profit or suffering loss? How much is that profit or loss? Should the firm shut down?
(iv) What is the fixed cost of production faced by this firm?
(v) What is the break-even price for this firm? What is the shut down price for this firm?
(vi) If fixed cost increases further, what impact will this have on this firm’s profit maximising level of output in the short run?
Explain why a monopolist does not have a well-defined supply curve?
Illustrate the relation between the Value of Marginal product and Marginal Revenue product of a factor under imperfect competition.
2. Discuss the significance of the Palace of Illusions/ Maya in the Mahabharata.
Discuss the strategic decision making in Oligopoly markets.
3. What purpose does the prologue serve in Mrichchhkatika?
Using appropriate diagrams compare and contrast short-run equilibrium conditions with the long-run equilibrium condition faced by a firm in perfect competition.