IGNOU BECC-132 December 2025 Previous Year Question Paper

Q1.(a) Compare the long-run equilibrium of monopoly and perfect competition with the help of a diagram. 10

(b) Let the cost of production of monopoly firm be given as C = 40 + Q? and demand as P= 20-Q. Find the profit maximizing level of output and price.

Q2.(a) Explain the backward bending supply function of labour. 10

(b) Is demand for capital a derived demand ? Explain the concept of inter-dependent demand also.

Q3.(a) Compare the Ricardian theory of rent with the modern theory of rent. 10

(b) Give reasons as to why wage differences arise.

Q4.(a) What are positive and _ negative externalities ? Why do they arise ? Explain any one step of internalizing externalities. 4+4+2

(b) Explain the comparative advantage theory of trade with example.

Q5.Explain excess capacity under monopolistic competition using diagram.

Q6.Let there be two firms which produce output under zero cost of production. The market demand curve is given by P = 20 — Q (where Q = total output). Calculate the output solution for the two firms’ under Stackelberg’s model.

Q7.What is price discrimination ? Explain the degrees of price discrimination under monopoly.

Q8.Explain TRIPS and TRIMS agreement in WTO.

Q9.Explain the first fundamental theorem of Welfare Economics with diagram.

Q10.Distinguish between interest and profits as rewards of factors of production.

Q11.Write short notes on any three of the following : 3x4=12

(a) Kinked demand curve

(b) Public goods vs. Private goods

(c) Selling costs in monopolistic competition

(d) Public monopoly

(e) Allocative efficiency 8-412378500-132 8-412378500-132 2.1. 0. 8-412378500-132 3x4=12