The Metaphysical Poets
See Answer →Shakespearean Tragedy
See Answer →Make distinction between any three of the followings:
(i) Weak preference and strong preference
(ii) Numeraire good and non-discrete good
(iii) Homogenous function and Homothetic function
(iv) Compensating variation and Equivalent variation.
A firm faces the Average Fixed Cost function as AFC = 200x-1 and Average Variable Cost function as AVC = 0.2x2 where x represents output. Show diagrammatically what shape will its total cost function (AC) take?
See Answer →‘The second fundamental theorem of welfare economics treats the concepts of efficiency and equity differently’. Explain.
See Answer →Distinguish between utility function and expected utility function. Discuss the assumptions associated with the Von Neumann Morgenstern Utility Function.
See Answer →What is consumer’s surplus and how it is measured? Explain with illustration.
See Answer →Given the utility function of a consumer, U = 4 A0.5 B 0.5, he spends all his income amounting Rs. 120 on the two goods A and B. Good A costs Rs. 10 a unit and B Costs Rs. 15. What combination of A and B will be purchased by him?
See Answer →Given a firms’ demand schedule P = 200 – 2q and its total cost function TC = 2
3
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Consider A Firm facing the demand schedule P = 190 – 0.6q and the total cost function
TC = 40 + 30q + 0.4q2
a) What output will maximize profit?
b) What output will maximize total revenue?
c) What will the output if the firm makes the profit of Rs. 4,760
For the given production function Q = 4.5 K 0.4 L 0.7 Drive a function in the form K = f (L) for the isoquant representing an output of 54.
See Answer →What is the distinction between short run production function and long run production function? Explain with example and diagram the various stages of total product associated with law of variable proportions.
See Answer →Consider a consumer with the utility function given by U(X, Y) = XY where X and Y represent the two goods of consumption priced at Px and Py, respectively. The income of this consumer is assumed Rs 120, Px = Rs. 3 and Py = Rs.1. Suppose price of good X falls to Rs. 2.50, what will be its impact on consumption quantities of both the goods.
See Answer →Distinguish between substitution effect and Income effect. Make a comparison with illustration between Slusky’s approach and Hicksian approach to decompose the price effect into substitution effect and income effect.
See Answer →What will be the resultant effects on the labour market if the minimum wage is set below the market equilibrium wage rate?
See Answer →With the help of a diagram show the effect of the minimum wage rule on the labour market given that the wage is set above the market equilibrium wage rate.
See Answer →A Monopoly faces market demand given by Q = 30 – P, where Q stands for quantity and P for price. Total cost function is given by C(Q) = 2Q2 . Find the profit maximising price and quantity and the resulting profit to the monopoly. Compare your results with the equilibrium quantity and price of that of a perfect competitive industry.
See Answer →Draw a kinked demand curve and explain how a change in marginal costs may not affect the price in the market.
See Answer →Consider the following Table which gives total cost schedule of a firm. Given that the average fixed cost of producing 2 units of output is Rs. 10. Find the total variable cost, total fixed cost, average variable cost, average fixed cost, short-run average cost, and short-run marginal cost schedules of the firm for the corresponding values of output.
Quantity Total cost
1 50
2 65
3 75
4 95
5 130
6 185
See Answer →Given that a firm experiences a linear homogenous production function, comment upon the shape of the Expansion path, both in the long run and in the short run.
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