BECC-105 INTERMEDIATE MICROECONOMICS – I in English Solved Assignment 2021

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BECC-105 INTERMEDIATE MICROECONOMICS – I

Solved Assignment 2021

INTERMEDIATE MICROECONOMICS – I
Tutor Marked Assignments
Course Code: BECC-105
Assignment Code: Asst /TMA /2021
Total Marks: 100

SKU: BECC-105 EM Categories: , ,

Description

BECC-105 INTERMEDIATE MICROECONOMICS – I

Solved Assignment 2021

INTERMEDIATE MICROECONOMICS – I
Tutor Marked Assignments
Course Code: BECC-105
Assignment Code: Asst /TMA /2021
Total Marks: 100

Title Name BECC-105 Economic HONOURS Solved Assignment 2021
University IGNOU
Service Type Solved Assignment (Soft copy/PDF)
Course BAG(Economic HONOURS)
Language ENGLISH
Semester 2021 Course: BA(Economic HONOURS)
Session 2021
Short Name BECC-105 (ENGLISH)
Assignment Code Asst /TMA /2021
Product Assignment of BAG(Economic HONOURS) 2021 (IGNOU)
Submission Date The assignments should be submitted to the Coordinator of your Study Centre before
31st October 2021
Price RS. 100

Answer the following Descriptive Category questions in about 500 words each. Each question
carries 20 marks
2 × 20=40
1. (a) Using appropriate diagrams compare the different forms of Long-run industry supply curves
in Perfect competition. (10)
(b) A perfect competitive industry faces a demand curve represented by Q = 25,000 – 1000P.
Also suppose that an individual firm belonging to that industry faces a total cost function
given by
TC (q) = 40q – q
2
+ 0.01q
3
Here q represents quantity of output produced by an individual firm, Q is the total industry
output and P is the price. What would be the equilibrium market price? How much does each
firm produce in equilibrium? and also find how many firms would be there in the industry in
the long run? (10)
2. (a) Given the utility function of an individual, U(W) = 20𝑊, where W stands for wealth.
Comment upon the Risk Aversion of such an individual with the help of a diagram. (5)
(b) Now, let the initial wealth of the individual mentioned above be Rs 400. Suppose this
individual runs a factory, the chances of which catching fire is 1/5. The damage that will be
caused by such fire is estimated to be Rs 300.
(i) What is the expected loss due to the fire? (5)
(ii) What is the expected utility of the individual? (5)
(iii) If the insurance company asks for a premium of Rs 61, would he pay for it? (5)
Assignment Two
Answer the following Middle Category questions in about 250 words each. Each question carries
10 marks.
3 × 10 = 30
3. (a) Discuss the properties of well-behaved preferences. What kind of preferences can be
represented by a utility function? (5)
(b) A monotonic transformation of a utility function representing consumer’s preferences
preserves the order of the preferences. Do you agree? Explain using an example of a utility
function. (5)
4. (a) Consider a pure-exchange economy of two individuals (A and B) and two goods (X
and Y). Individual A is endowed with 5 units of good X and 3 units of good Y, while
individual B with 3 and 4 units of good X and Y, respectively. Assuming utility function
of individual A and B to be UA = XA YA
2
and UB = XB
2 YB, where Xi and Yi for i = {A,
B} represent individual i’s consumption of good X and Y respectively, what will be the
set of Pareto optimal allocations in this economy? (7)
(b) State the feasibility condition of an allocation in a general equilibrium framework. (3)
5. (a) Consider a Cobb-Douglas production function Q = ALαK
β where the amount produced
(Q) is given as a function of the labor (L) and capital (K) used and A, α, β are constants.
Show that for such a production function, the marginal product of capital (or labor) is a
constant times the average product of capital (or labor). (5)
(b) Show that with a constant returns to scale production function, the marginal rate of technical
substitution (MRTS) between labour and capital depends only on the input ratio and not on the
scale of production. (5)
Assignment Three
Answer the following Short Category questions in about 100 words each. Each question carries 6
marks.
5 × 6 = 30
6. Differentiate between Discrete and Continuous probability distribution.
7. Discuss properties of a Profit function.
8. What is an Intertemporal budget constraint?
9. What is meant by a Neutral technical progress? Compare it with a Labour-deepening technical
progress.
10. Discuss Quasi-linear preferences.

BECC-105, BECC 105, BECC105

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