Tiêu đề CORE-3.pdf ✅

CORE-3, Microeconomics 2 – Final Exam (Date – 27/09/2020, start 10 am) BB College, Asansol (West Bengal), Submission time 10 am, 28/09/2020 A. MCQ: Each carrying 1 marks : 10 x 1 = 10 Marks 1. In Cournot Model both Firms determines --------------------- Simultaneously. a. Output b. Price c. Price and output d. Profit 2. Monopolistic competition has elements of a. Oligopoly and Monopoly b. Monopoly and Perfect Competition c. Perfect Competition and Oligopoly d. None, it’s unique form of market structure 3. Partial Equilibrium analysis is developed by........................................., Whereas General equilibrium analysis is developed by..................... a. Adam Smith, Marshall b. Adam Smith, Walras c. Walras, Marshall d. Marshall, Walras 4. Choose the correct order of common market structure a. Monopolistic Competition, Monopoly, Perfect Competition, Oligopoly b. Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition c. Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly d. Perfect Competition, Monopolistic Competition, Monopoly,Oligopoly 5. Firms face competition when the good they produce is in a market with a. natural barriers to entry b. is unique c. is in a market with legal barriers to entry d. has a close substitute 6. All points on the contract curve are a. Pareto efficient b. do not maximize social welfare c. are not Pareto efficient d. are Pareto improving 7. Quasi rent is a a. Short period temporary phenomenon b. Long run phenomenon c. Time phenomenon d. None.
8. Excess capacity is Not found under a. Monopoly b. Monopolistic competition c. Perfect competition d. Oligopoly 9. One of the following is NOT an assumption of the marginal productivity theory: a. Units of factor are homogeneous b. Mobility of factor c. Low price of factor d. Perfect competition 10. Normal profit is shown by a. AR=MR b. AR=MC b. MR=MC d. AR=AC B. Objectives Questions: Attempt and 5, each carrying 2 marks. 5 x 2 = 10 marks 1. Define Pareto Optimality? Draw graph of it ? 2. What is Economic Profit? State the condition for Supernormal profit? 3. Why Monopolistic competitive demand curve differ from perfect competition? 4. Why Oligopoly market is Characterize by Price Rigidity? 5. Suppose TR = 4Q , where Q = KL 2 , Find MPPL and MRPL for K = 2 and L = 5? 6. Why Long run equilibrium is called stable equilibrium? 7. Show that Monopolistic competition leads to deadweight loss? 8. What is Economic rent? Under what condition Economic rent will be zero? 9. Under what condition VMPL is higher than MRPL and When both are equal? 10. State the necessary and sufficient condition for determining equilibrium price and quantity ? C. Short Answer type (Attempt any 4, each carrying 5 marks, 4 x 5 = 20 marks, Words limit 50-60) 1. What is Excess capacity? Discuss the issue of excess capacity in Monopolistic Competition? 2. State the Marginal Productivity theory of distribution? What are its limitations? 3. What factors determine movement along the demand curve for labor and increase or decrease in it? 4. Functional distribution of income is a part of Personal distribution of Income, Discuss? 5. What is kinked demand curve? How does it explain price rigidity? 6. Distinguish between Partial Equilibrium and General Equilibrium? 7. Discuss the effects that lead to backward bending of Labor Supply curve? 8. Under Monopolistic Competition firms enjoy monopoly power without enjoying Monopoly profit, Discuss?
D. Long Answer type: (Attempt any 1, 1 x 10 = 10 marks, words limit 100-120) 1. Compare Perfect Competition and Monopolistic Competition? Suppose firms are making Supernormal profit in the short run in Monopolistic Competition, then discuss the adjustment mechanism in the long run? (Draw only final graph) (5+5 = 10 marks) 2. Critically place the main argument of Rent, Dynamic, Risk, Uncertainty and Innovation theory of Profit to justify consideration of Profit as a residual? (5+5 = 10 marks) 3. Compare the efficiency criteria in Perfect Competition, Monopolistic Competition and Monopoly. Which form of market structure best suited in real world and why? (10 marks) 4. a.What is Edgeworth box ? Consider an Exchange economy with no production. There are two agents A and B, they have endowments of both goods X and good Y as follows; Endowment of agent A: (WA X , WA Y ) = (3200, 2000) Endowment of agent B: (WB X , WB Y ) = (1800, 4000) b. Draw Edgewoth box with initial Endowments? c. Suppose preference i.e., Indifference curve of both agents are well behaved, show the respective position and shape of Indifference curve for Agent A and Agent B in the Edgewoth box? d. What is Pareto improvement? e. Interpret the Pareto improvement point A, B and C, given initial endowment W? (2+2+2+2+2 = 10 marks)