Becc-101: Introductory Microeconomics Tutor Marked Assignments
Becc-101: Introductory Microeconomics Tutor Marked Assignments
Becc-101: Introductory Microeconomics Tutor Marked Assignments
Answer the following Descriptive Category questions in about 500 words each. Each question carries
20 marks. Word limit does not apply in case of numerical questions. 2×20 = 40
1. (a) How is Monopoly different from that under Perfect Competition? Explain the long run
equilibrium under Monopoly.
(b) Give reasons for diminishing returns to scale accruing to a firm in the long run.
2. (a) In a duopolist market two firms can produce at a constant average and marginal cost of
AC = MC = 2. They face the market demand curve P = 14 – Q, where Q = Q1 + Q2, here Q1 is the
output of Firm 1, Q2 is the output of Firm 2. In the Cournot’s model:
(b) The Paul Sweezy’s kinked demand curve model shows price rigidity under Oligopoly.
Explain how.
Assignment Two
Answer the following Middle Category questions in about 250 words each. Each question carries 10
marks. Word limit does not apply in application part of the question. 3× 10 = 30
4. Why do you find variations in the wage-rates across different professions? Give reasons as to
why a professor is paid higher salary than a school teacher?
5. What are externalities? Explain with diagram why is the optimal output not reached under
negative externality.
Assignment Three
Answer the following Short Category questions in about 100 words each. Each question carries 6
marks.Word limit does not apply in application part of the question. 5 × 6 = 30
7. What is an Income consumption curve? Draw the Income consumption curve for an inferior
good.
8. What are the policy instruments available for government intervention to regulate inefficient
market situations?
9. What is the concept of efficiency in economics? How is the efficient allocation of resources
done among firms?