Micro Economics Question Paper' 2020 (Held in 2021) | B.Com 1st Sem (Hons)

 Dibrugarh University B.Com 1st Sem Question Papers 
2 0 2 1 (March)
COMMERCE (Generic Elective)
Paper: G–101

Full Marks: 80

Pass Marks: 32

Time: 3 hours

The figures in the margin indicate full marks for the questions

1. Answer the following as directed:                      1×8=8

(a) Cross elasticity of demand between tea and coffee is

1)         positive.

2)         negative.

3)         zero.

4)         infinite.  (Choose the correct answer)

(b) “Supply is a ________ function of price of the commodity.” (positive/negative)

Which is correct?

(c) Which of the following is not a property of indifference curve?

1)         Convex to the origin.

2)         Downward sloping from right to left.

3)         Does not cut each other.

4)         None of the above.  (Choose the correct answer)

(d) The concept of fixed cost of production is concerned with

1)         short run.

2)         long run.

3)         both short run and long run. (Choose the correct answer)

(e) Write the meaning of opportunity cost.

(f) Mention any one objective of a business firm.

(g) What is the most important condition of equilibrium of a firm?

(h) Why is the demand (average revenue) curve of a monopolist downward sloping?

2. Write short notes on the following (any four):                 4×4=16

a)         Point elasticity of demand.

b)         Income consumption curve.

c)          Social cost and private cost of production.

d)         Social cost of monopoly.

e)         Characteristics of Isoquants.

f)          Average revenue and marginal revenue curves under monopolistic competition.

3. What is elasticity of demand? Mention different types of elasticity of demand. Explain any one method of measuring price elasticity of demand with the help of numerical example.       2+3+6=11


What is an indifference curve? Explain the main properties of an indifference curve.         3+8=11

4. Explain with the help of numerical example the law of variable proportion. In which stage a rational producer fixes his output?     8+3=11


Write the meaning of ‘optimal combination’ of factor of production. Explain the equilibrium of a firm with the help of isoquant and isocost lines. (Write both output maximization and cost minimization.)  3+8=11

5. Define normal price. Diagrammatically explain how normal price is determined. Why does a firm under perfect competition make only normal profit in the long run?      2+6+3=11


Illustrate the effects of taxes and subsidies on demand and supply under perfect competition.    6+5=11

6. Discuss the main features of monopoly market. Explain with diagram how the equilibrium price and output are determined under monopoly in the short run.         4+7=11


What is price discrimination? Discuss with diagram how price and output are determined under discriminating monopoly.        3+8=11

7. What is meant by product differentiation? Explain with the help of diagram the ‘individual equilibrium’ and ‘group equilibrium’ under monopolistic competition.  4+8=12


Point out the main characteristics of oligopoly. Explain the price and output determination process under price leadership in oligopoly.          4+8=12


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