Qutput AFC MC AVC AC 1 60 20 20 80 2 30 4g 19 49 3 2 16 18 «38 4 13 18 18 33 5 2 2B 19 31 Output = TRC Mc MR 1 8 10 8 10 2 13 18 7 8 3 21 (2a 6 6 a 3 2B 4 — Equilibrium 5 3330 8 2 The conditions for producer’s equilibrium are: 1. MC=MRand |___ Beyond the level of output at which MC = MR, MC must be greater than MR. Both these conditions are satisfied at 4 units of outputSo the Producer is in equilibrium, when he produces 4 units. C=C + mpcl¥) 8000 = 500 + mpc(10000) 7500 mp .75, 10000 1 So mps =1- 0.75 = 0.25 or > NA = (i) + (ii) + (ill) + (v) + (vi) - (vil) = 2000 + 400 + 900 + 500 + 7000 - 50 = Rs 10750 Crore. N.N.D. + Net indirect taxes ~ Net current transfer to rest of the world. = 10750 + 300-30 = Rs 11020 CroreGNPyy = i+ iv t (vit viii) — ix iii = 800 + 300 + 200 + 100 ~ 30 - (-10) = Rs.1380 Crore Private Income = (GNPhp — viii — v) —x— ii + vii + xi = 1380-100 - 150 - 90 - 20+ 40 +50 Rs.1110Crore Y=C+MPC(Y)+1 1000 = 200 + MPC (1000) + 100 1000 200-100 700 _ nee 1000 i000 = °” N.1.= (i+ vi) + (ix + xi) +x + iv iti = 1000 + 100 + 200 + 50 + 300 + 400 - 10 Rs. 2040 Crore Pr.l = N.L.—(vili) — fi + 0 + vii = 2040 ~ 150 — 20+ 120 + 60 = Rs. 2050Crore ay =a1—__ “ITT PC =300 = 300 x3 = Rs. 900 croreNVA Sales + unsold output — Single use producer goods - Depreciation — Taxes on production 204+2-5-(2)-1 204+2-5-1-1 Rs. 15 Lakh