Draw a kinked demand curve and show how a change in marginal costs may not affect the price in the market.

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.

Explain why a monopolist does not have a well-defined supply curve?

(i) Consider Figure 3, where DD’ represents a rectangular hyperbola shaped demand curve for a good. Find the price elasticity of demand for this good at point A and point B.

(ii) Given the price elasticity of demand for a good as 0.6. Suppose price of this good decreases by 10%, what would we expect to happen to the quantity demanded?

A Giffen good is a special type of inferior good. Do you agree? Give reason.

Consider the demand curve AC of a good in Figure 2. Given distance AB and BC as x and y, units respectively,

(i) What will be the price elasticity of demand for the good at point B? What will be the price elasticity of demand for the good at point A and at point C?

(ii) Given that price elasticity at point B is 1, how x and y will be related?

Discuss the income and substitution effects of a price change in case of an inferior good

A firm in a perfect competitive market structure faces a marginal cost function given by MC(Q) = 4Q + 5 where Q represents quantity of output produced. This firm earns marginal revenue of Rs 25 on each unit sale of its output. Suppose this firm decides to produce 3 units of output, is this a profit maximising decision by the firm? If not, how much should this firm produce to earn maximum profits? In the long-run will this firm earn negative economic profits, positive economic profits, or zero economic profits?

Using appropriate diagrams compare and contrast short-run equilibrium conditions with the long-run equilibrium condition faced by a firm in perfect competition.

Consider Figure 1 below where MC, ATC, AVC, D, and AR represent the marginal cost, average total cost, average variable cost, demand, and average revenue curve respectively under a perfect competition. Based on the figure, answer the following questions: 10

(i) What is the profit maximising level of output for this firm in the short-run? At this quantity, what is the marginal revenue?

(ii) How much is the total cost for this firm in the short-run equilibrium?

(iii) In the short run, is the firm making economic profit or suffering loss? How much is that profit or loss? Should the firm shut down?

(iv) What is the fixed cost of production faced by this firm?

(v) What is the break-even price for this firm? What is the shut down price for this firm?

(vi) If fixed cost increases further, what impact will this have on this firm’s profit maximising level of output in the short run?

Any two major business houses in India

Crowd Funding

Angel Investors

Angel Investors

What are the important factors to be considered while deciding the location of a Start-up?

What are the important factors to be considered while deciding the location of a Start-up?

Differentiate between hard skills and soft skills

List the stages in the Contract Management process.

Explain the financial entrepreneurial support system in India

Write a note on conflicts in Family business and their resolutions.