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Advanced Micro Economics PDF
Advanced Micro Economics PDF
2. How. Chamberlin uses planned sales curve to explain equilibrium of a firm and
group when the entry of firms is permitted ? (2017)
3. Derive the expansion-path for a firm operating with the Cobb-Douglas Production
Function. (2017)
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5. Explain kinked demand curve theory with the help of diagram. (2016)
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6. Write on Prisoners’ dilemma and Nash equilibrium. (2016)
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7. What is a Lemon Market? What is the role of signaling and screening in
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without using average cost curve, the conditions in equilibrium for the
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existence of (i) normal profit, (ii) supernormal profit and (iii) loss. (2015)
10. Explain the backward sloping supply curve of labour a choice between
income and leisure.
13. Examine the relationship between own and cross price elasticities for a
compensated demand function. (2014)
14. Discuss the cobweb model of dynamic equilibrium with lagged
adjustment. Explain how the existence of a stable equilibrium depends
on the nature of the demand and supply curves. (2014)
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Walrasian equilibrium. Show that for such an economy for any
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equilibrium set of prices that the absolute price level is indeterminate.
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(2013)
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17. Under Bertrand price competition with homogeneous products in an
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18. Let the market demand curve for carbonated water be given by
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9Q
P 20 where P is the price and Q is the market output. Let there be
2
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What is the market equilibrium price and quantity when each firm
behaves as a Cournot duopolist? What are the firms’ profits?
What is the market equilibrium price and quantity when each firm
behaves as a Bertrand duopolist? What are the firms’ profits? (2013)
21. Show how price output decision is taken by duopolists, taking into
account, their mutual reaction. Under what condition will the duopolistic
market be in equilibrium? (2012)
23. Is rent a surplus? Give reasons in support of your assertion and point
out the difference between ‘rent’ and ‘quasi-rent’. (2012)
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surplus after explaining consumer’s surplus along with the underlying
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assumptions. (2012)
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25. What is prisoner’s dilemma? How is it related to a strictly dominant
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industry? (2012)
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27. A Supply curfe is not used to determine the equilibrium price and
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28. State and explain the Law of Equi-marginal Utility and also state clearly
the limitations of this law. (2010)
29. What are the ways in which a perfectly competitive market may become
imperfect? Examine whether advertisement helps as imperfectly
competitive market become a perfectly competitive one. (2010)
30. Demand for light bulbs can be characterized by Q = 100 – P, where Q is
millions of boxes of lights sold and P is the price per box. There are two
producers of lights having identical cost functions :
1
Ci 10Qi Qi2 (i = 1, 2)
2
2
Q Qi Q1 Q2
i 1
(a) Unable to recognize the potential for collusion, managers of the two
firms act as short-run perfect competitors. What are the
equilibrium values of Q1 , Q2 and P? What are each firm’s profits?
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equilibrium values of Q1 , Q2 and P? What are each firm’s profits?
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(c) Suppose Firm I guesses correctly that Firm II has Cournot
conjectural variation, so it plays Stakelberg. What are the
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equilibrium values of Q1 , Q2 and P? What are each firm’s profits?
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(d) If the managers of two firms collude, what are the equilibrium
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31. “ A dominant firm acts as a price leader and other firms adjust their
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(2008)
33. What are backward-rising input supply curves? Illustrate with the help of
suitable examples. (2007)
34. With the help of suitable diagrams, elaborate Cournot model. What is the
significance of reaction curves in the model? (2007)
38. ‘A monopolist can either decide the output of his product or the price of
the product but not both.’ Explain and illustrate. (2002)
39. Explain oligopoly. Does the Sweezy’s kinked demand curve solution offer
a satisfactory explanation of price-output decisions under oligopoly?
(2001)
40. What are the competitive and what are the monopolistic elements in
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monopolistic competition? Explain fully. (2000)
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41. Illustrate Kinky demand curve and bring out its implication for pricing
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under conditions of oligopoly. (1999)
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42. Perfect competition may be myth but competitions is a reality in every
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43. What is pure competition? How does it differ from perfect competition?
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(1997)
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45. Explain why the price in competitive markets settles down at the
intersection of demand and supply curves. “ A very good harvest tends to
lower the income of farmers.” Illustrate this proposition using a supply
demand diagram. (1996)
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