Roll No. ......................

Total No. of Questions : 13] [Total No. of Pages : 02

Paper ID [B0103]
(Please fill this Paper ID in OMR Sheet)
BBA (103) (Old) (Sem. - 1st)
MICROECONOMICS

Time : 03 Hours Maximum Marks : 75

Instruction to Candidates:
1) Section - A is Compulsory.
2) Attempt any Nine questions from Section - B.

Section - A
(15 x 2 = 30)
Q1)
a) Define Supply.
b) Define Individual demand.
c) What are the two forces for market equilibrium?
d) What do you mean by price elasticity of demand?
e) Define Marginal Revenue (MR).
f) What are the exceptions of law of Diminishing Marginal Utility?
g) What do you mean by Indifference map?
h) Explain fixed factors of production.
i) Define marginal Rate of Technical Substitution.
j) What are the variable costs of a firm?
k) Industry is the price maker and firm is the price taker under perfect
Competition. Explain it.
l) What are the Heroic assumptions under monopolistic Competition?
m) Can a monopolist sell more of a commodity at a higher price?
n) What is the meaning of Barometric Firm under price leadership?
o) What is the meaning of Dumping?

D-272 P.T.O.
 Section - B
(9 x 5 = 45)

Q2) Show the equilibrium of demand and supply in the market with the help of a
diagram. What happens if supply of the Commodity increases?

Q3) How does change in income of the consumer affect demand of a commodity?

Q4) Distinguish between less than unit elastic and more than unit elastic price
elasticity of demand.

Q5) What is the relationship of AR and MR?

Q6) Explain the law of diminishing marginal utility.

Q7) Describe how rationing of goods acts as binding for consumer and reduces
his welfare, with the help of indifference curve analysis.

Q8) What are the causes of operation of law of increasing returns in short run?

Q9) What is the relationship between Total Fixed Cost (TFC), Total Variable
Cost (TVC) and Total Cost (TC)?

Q10) What is normal price? How is it determined in perfect competition?

Q11) How price is determined under monopolistic competition?

Q12) Explain price and output determination under discriminating monopoly.

Q13) Explain price - rigidity under oligopoly.

RRR

D-272 2