becc 132 solved assignment 2022-23 in english

Description

BECC 132 ? PRINCIPLES OF MICROECONOMICS – II
Course Code:BECC 132

Course Title: PRINCIPLES OF MICROECONOMICS – II
Assignment Code : : BECC 132/Asst/TMA/2022-23

Medium ? English

Course : BAG

Session 2022-23
Submission date : Last date of submission for July 2022 session is 30th April, 2023 and for January 2023 session is 30th October, 2023

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Questions in assignment

1. (a) Discuss the implications of price regulation adopted in terms of MC/AC pricing by a
public monopoly on the consumer welfare. (8)
(b) Consider a Monopoly producing good X. The firm has fixed costs equal to Rs 100
and the firm’s total costs increase by Rs 10 for each additional good X they
produce. The inverse demand curve for good X is given by: P(X) = 200 – X, where P
is the price.
(i) Write down an equation giving total costs for the firm as a function of X.
(2)
(ii) What will be the equilibrium quantity of good X that the firm will produce?
Also calculate the equilibrium profit. (5)
(iii) What would have been the equilibrium quantity had it been a perfectly
competitive firm? (5)
2. (a) Discuss characteristic features of an Oligopolistic market structure. What are the
various reasons that have led to emergence of this market structure? (10)
(b) With regards to the Kinked demand curve theory given by Paul Sweezy, answer the
following:
(i) The demand curve facing an oligopolist is relatively more elastic above the kink
and less elastic below the kink. Discuss. (5)
(ii) Comment on the shape of the Marginal revenue curve of this model. (5)

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