Scribd
Upload
7 views4 pages

Micro II - NEP-UGCF 2023

Uploaded by

Dhaireya Jagya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
7 views4 pages

Micro II - NEP-UGCF 2023

Uploaded by

Dhaireya Jagya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

(This question paper contains 4 printed pages.

]
Your Roll No. 220508004
Sr. No. of Question Paper : 506 G
Unique Paper Code 2922 102301
Name of the Papcr Microeconomics
Name of the Course : B.A. (H) Business
Economics
Semester : III
Duration: 3Hours Maximum Marks : 90

Instructions for Candidates


1, Write your Roll No. on the top immediately on receipt
of this question paper.
2. Attempt all parts of a particular question together.
3. Attempt FIVE questions in all. Question No. I is
compulsory.

1. Determine whether of the following assertions is true


or false. Use the appropriate justifications and
diagrams to support your answer. Attempt any Three.

i) The social cost of a monopoly's inefficiency is


represented by deadweight loss.
P.T.0.
506 2

(ii) Third-degree price discrimination is the practice


of splitting consumers into two or more groups
with distinct demand curves and charging cach
group a diflerent price.

iti) At a Pareto efficient allocation, it is not possible


making at
lo make one person better off without
AND At a
least one other person worse off
Pareto efficient allocation, all gains from trade
are exhausted.

(i) Arrow's Impossibility Theorem shows that there


aggregate indivídual
are many ways to
preferences into social preferences. (6x3)

operating.
2. In a duopoly market, there are two firms
described by the
They face a linear demand curve
the
equation Q=212 - P, where Q represents
(Q, +
total output produced by both firms
with
and both firms have constant production costs,
MC, =MC, = 20.

(i) If both firms aim to maximize their profits


following Cournot's Equilibrium, determine
Cournot's Equilibrium, which includes both the
price and quantity produced, using the reaction
curves. Additionally, calculate the profit for each
firm.
506 3

Derive the Stackclberg solution, (a) with firm 1


as the leader (b) and then with firm 2 as the
leader. (9+9)

(a) Explain the long run supply curves for industries,


operating under perfectly competitive market
that experiencing increasing and constant
costs conditions, supported by appropriate
(10)
diagrams.

(b) What is your interpretation of excess capacity in


monopolistic competition? (8)

What constitutes a monopsonistic market? How a


profit-maximizing monopsonist does exploit labor? And
what impact do trade unions have on wages and
employment in a monopsonistic labor market? (18)

5. (a)A standard monopoly leads to an inefficient


equilibrium, whereas a price-discriminating
monopoly results in an efficient equilibrium. Clarify
using appropriate diagrams. (10)

(b What is Arrow's impossibility theorem in welfare


economics? Critically evaluate it in context of
welfare economics. (8)

P.T.0.
506 4

(a) Even when the initial allocation is symmetric,


arbitrary methods of trade will not necessarily
produce a fair allocation. Describe. (9)

yCiticaly
(byCritically evaluate the social wel fare function to
explain efficiency in production and
consumption.
(9)

(500)

You might also like