Punjab Technical University 2010-1st Sem B.B.A ,, Micro Economics , , - Question Paper

Time : 03 Hours
Maximum Marks : 60

Instruction.to Candidates:
1) part - A is Compulsory.
2) Attempt any 4 ques. from part - B.

part – A [Marks : 10×2=20]

Q1)a) State the legal regulations of diminishing marginal utility.

b) Distinguish ranging from cardinal and ordinal utility.

c) What is marginal rate of substitution?

d) Why demand curve for a provided good has a positive slope?

e) Distinguish ranging from fixed inputs and variable inputs.

f) What is the difference ranging from explicit cost and implicit cost.

g) Mention the different features of perfectly competitive market.

h) elaborate external economies?

i) Mention the 3 conditions necessary for the existence of monopoly.

j) Using the concept of cross elasticity of demand describe substitutes and complements.

part - B [4x10-40]

Q2) explain the meaning nature and scope of micro economics.

Q3) Using indifference curve analysis show price effect of a commodity is decomposed in to income effect and substitution effect.

Q4) What is elasticity of demand? How would you measure price elasticity at a point on a demand curve?

Q5) elaborate the 3 stages of short run production function? Why does it not make any economic sense to produce in stage1 or stage3 .

Q6) Derive long run avg. cost curve from short run avg. cost curves. Does the curve joining the minimum points of short run avg. cost curve constitute long run avg. cost curve? provide reasons?

Q7) How are price and output determined under monopoly. Show that under monopoly price is higher and output smaller than under perfect competition.

Earning:   Approval pending.