Match the items of List – I with those of the List – II and indicate the correct code : List – I List –…
The economic range of producer's equilibrium is bounded by Ridge Lines where marginal products are zero (iv), while an Isoquant Curve shows all possible input combinations…
Choose your answer
Match the items of List – I with those of the List – II and indicate the correct code :
List – I
List – II
a. Producer’s equilibrium range
i. Leon Walras’s approach
b. Possible input use
ii. Alfred Marshall’s approach
c. New price equilibrium after change in demand is set through price adjustment
iii. Isoquant curve
d. New price equilibrium after change in demand is set through quantity adjustment
iv. Ridge lines
Answer and explanation
Correct answer C
The economic range of producer's equilibrium is bounded by Ridge Lines where marginal products are zero (iv), while an Isoquant Curve shows all possible input combinations yielding the same output (iii). Leon Walras's stability approach adjusts equilibrium through price movements in response to excess demand (i), whereas Alfred Marshall's approach adjusts equilibrium through quantity/output changes in response to the gap between demand price and supply price (ii).
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UGC NET Commerce