2019 Question Paper B.Com 1st Semester (CBCS) MICRO ECONOMICS

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:       1x8=8
(a) “The price of commodity” is a factor of demand function. (Write True or False)
(b) Marginal revenue will be zero, if elasticity of demand is _____ (less than one/equal to one/greater than one/zero)
(c) What is production function?
(d) Under which form of market a firm is a price taker?
(e) Total cost is the summation of
     (i) total fixed cost and total variable cost.
     (ii) average cost and marginal cost.
     (iii) real cost and opportunity cost.
     (iv) selling cost and money cost. (choose the correct answer)

(f) Which of the following economics is associated with monopolistic competition?
     (i) Adam Smith
     (ii) Keynes
     (iii) Chamberlin
     (iv) Marshall       (choose the correct answer)

(g) In which market firms are mutually interdependent in determination of price of commodity?
     (i) Perfect competition
     (ii) Monopoly
     (iii) Monopolistic competition
     (iv) Oligopoly     (choose the correct answer)

(h) AR curve is also known as ___________ (Fill in the blank)

2. Write short notes on the following (Any four):  4x4=16
    (a) Income effect and income consumption
    (b) Characteristics of isoquant curve
    (c) Relationship between average cost and marginal cost             
    (d) Duopoly
    (e) Producer’s surplus

3. (a) What is price elasticity of demand? Examine the role of price elasticity of demand in decision-making of a firm. 4+7=11
(b) What is consumer’s equilibrium? Explain with the difference curve and budget constraint how a consumer attains equilibrium.  3+8=11

4. (a) Discuss laws of returns to scale. How are laws of returns to scale different from laws of variable proportions?   8+4=12
(b) What is economies of scale? Discuss about internal economies and external economies. 2+10=12

5. (a) Discuss the features of a perfectly competitive market. Explain how a firm under perfect competition attains equilibrium with normal profit, super normal profit and loss in the short-run. 4+7=11
(b) Explain the effect of imposition of a specific tax on equilibrium price and output under perfect competition. 11
6. (a) Describe how a monopolist determines his profit-maximizing output and price in the long- run. How can monopoly power be measured? 8+3=11
(b) What is price discrimination? Discuss the types of price discrimination with examples. Discuss the conditions of price discrimination. 2+6+3=11                                        
7. (a) Illustrate how a firm in monopolistic competition reaches its equilibrium in the short-run. Can economic efficiency be attained in monopolistic competition? Discuss.  7+4=11
(b) Why does price leadership sometimes evolve in oligopolistic markets? Explain how the price leader determines a profit-maximizing price. 4+7=1