BECC-132 PRINCIPLES OF MICROECONOMICS – II in English Solved Assignment 2023-2024

BECC-132 PRINCIPLES OF MICROECONOMICS – II Solved Assignment 2023-2024

PRINCIPLES OF MICROECONOMICS – II
Tutor Marked Assignments
Course Code: BECC-132
Assignment Code: Asst /TMA /2023-24
Total Marks: 100

Answer the following Descriptive Category questions in about 500 words each. Each question
carries 20 marks
2 × 20 = 40
1. (a) Discuss the features of an Oligopolistic market structure. What are the various reasons that
lead to emergence of this market structure? 10
(b) With regards the Kinked demand curve theory given by Paul Sweezy, answer the following:
(i) What does the kinked demand curve model of oligopoly assumes about the price elasticity
of demand? 5
(ii) Comment upon the discontinuous shape of the Marginal revenue curve under this model. 5
2. (a) A country can have a comparative advantage in producing a good even if it is absolutely less
efficient at producing that good. Do you agree? Explain using an example. 12
(b) Consider the following Table 1 which represents labour time (in minutes) requirements for
the production of a unit of commodity X and Y by country A and B, and answer the questions
that follow:
Table 1: Labourtime (in minutes) requirement for production of a unit of Good X and Y by
Country A and B
Commodity X Commodity Y
Country A 20 20
Country B 30 60
(i) Which country among A and B has absolute advantage in producing commodity X and which
has in producing commodity Y? Give reason. 3
(ii) Which country among A and B has comparative advantage in producing commodity X and
which has in producing commodity Y? Give reason. 3
(iii)Suppose after trade each country specialises in production of commodity in which it has a
comparative advantage, which country will specialise in producing commodity X?

BECC-132, BECC132, BECC 132