2024 Microeconomics Past Paper PDF

## Bachelor of Business Administration (Financial Investment Analysis)- BBA (FIA) Microeconomics **[This question paper contains 4 printed pages.]** **Sr. No. of Question Paper: 589** **Unique Paper Code : 2922071102** **Name of the Paper : Microeconomics** **Name of the Course : Bachelor of Bus...

## Bachelor of Business Administration (Financial Investment Analysis)- BBA (FIA) Microeconomics **[This question paper contains 4 printed pages.]** **Sr. No. of Question Paper: 589** **Unique Paper Code : 2922071102** **Name of the Paper : Microeconomics** **Name of the Course : Bachelor of Business Administration (Financial Investment Analysis) - BBA (FIA)** **Semester : I** **Duration: 3 Hours** **Maximum Marks: 90** **Instructions for Candidates** 1. Write your Roll No. on the top immediately on receipt of this question paper. 2. Answer all questions. **1. Answer any four of the following:** (a) "If labor is the only variable input, average product reaches its maximum at the point where marginal product equals average product. True or False, explain" (b) A monopolist has total cost function C = 3Q² and faces the demand curve P=1200-Q. How much profit does this monopolist earn? (c) Heavy snowfall in Kashmir increased the prices of apples this year and total revenue earned by apple producers increased. We can infer from these facts that the demand of apples is highly elastic. True or false, explain. (d) "Right angled isoquants imply that MRTS between the two inputs is constant" True or false, explain. (e) "In a perfectly competitive market, an increase in fixed costs does not cause firms to sell at a higher price or reduce output in short run" True or false, explain. **2. (a) "If an increase in income leads to a decrease in consumption of X then an increase in price of X will lead to an increase in consumption of X" True or false, explain with the help of diagrams.** **OR** **(a) 'The demand curve for a commodity is downward sloping because of law of diminishing marginal utility' Discuss with the help of diagrams.** **3. (b) A monopolist sells X in two different markets.** The demand curves in two markets are: P₁ = 200 - Q₁ P₂ = 190 - 3Q₂ The cost of producing X is given by the following cost function C = 500 + 40Q where Q = Q₁ + Q₂ Find the profit maximising prices and quantities for monopolist in each market. How much profit does the monopolist make? **3. (a) Explain the relationship between short run and long run average cost curves? Why is the long run average cost curve considered as planning curve?"** **(b) "Social optimum is not reached under monopolistic competition as it is under perfect competition, even though the firms make zero excess profits" Discuss with the help of diagrams.** **4. (a) "Explain the determination of equilibrium price and quantity in a market which has a dominant firm and small follower firms".** **(b) What is meant by efficient combination of factor of production? Explain with the help of isoquants and isocost lines how a producer achieves this combination of factors?** **5. Write short notes on any four of the following:** (a) Modern theory of costs (b) Determinants of price elasticity of demand (c) Ridge Lines (d) Price rigidity under oligopoly (e) Dead weight loss under monopoly **[This question paper contains 4 printed pages.]** **Sr. No. of Question Paper: 3035** **Unique Paper Code : 2922071102** **Name of the Paper : Microeconomics** **Name of the Course : Bachelor of Business Administration - Financial Investment Analysis** **Semester : 1** **Duration: 3 Hours** **Maximum Marks: 90** **Instructions for Candidates** 1. Write your Roll No. on the top immediately on receipt of this question paper. 2. Attempt all questions. 3. All questions carry equal marks. 4. Use of simple calculator is allowed. **1. Answer any three questions of the following:** (a) Profit maximizing quantity same as quantity where MR is equal to MC. Comment. **(b) How does excess capacity arise in monopolistic competition?** **(c) Meena is very fond of eating gulab jamun and her demand for gulab jamun is more in winter season. Considering the above information true, show how will her demand curve for gulab jamun changes during monsoon?** **(d) Mr. A sells cupcakes at the price of Rs. 50. He employs 10 workers in his shop. Each worker is paid Rs. 200 per hour. What is the marginal productivity of the 10th worker, if Mr. A is a profit maximiser.** **2. (a) "Negative substitution effect does not always result in a downward sloping demand curve." Explain with the help of diagrams.** **(b) What will be the shape of indifference curves if you measure number of one rupees coin on the x axis and number of two rupees coin on the y axis? If the consumer derives more marginal utility from spending one rupee on y good than spending one rupee on x good, is this a state of rest for the consumer? If not, then how will the consumer reach a state of equilibrium? ** **3. (a) "The law of variable proportion determines the shape of short run cost curves". Explain.** **(b) Why are isoquants downward sloping and convex to the origin?** **(c) A producer employs Labour (L) and Capital (K) to produce commodity X. The *MRTS*_LK is 3 and marginal productivity of labour is 3. What is the marginal productivity of capital? ** **4. (a) ** _The figure above shows hypothetical MC, AC, and AVC curves for a "representative" firm; d1 to d4 (and MR1 to MR4) are alternative demand (and marginal revenue) curves that might face the_ **perfect competitive firm. Explain whether these point F, C, B, A constitute profit maximization, loss minimization, break even and shut down point for the firm assuming that firm was producing at these points.** **(b) Define a pure monopoly. What are the conditions that might give rise to a monopoly and what forces limit the pure monopolist's market power?** **5. Write short notes on any three of the following:** (a) Inferior good (b) Price rigidity under Oligopoly (c) Bandwagon effect and snob effect (d) Dominant price leadership model of oligopoly