IGNOU BECC-132 June 2023 Previous Year Question Paper

Q1.(a) Why is the supply curve of a firm in perfect competition the rising portion of the MC curve which lies above the AVC curve ? Describe with the help of a diagram. 10

(b) Why does an oligopolist firm face kinked demand curve ? Show the price determination in kinked model of oligopoly.

Q2.(a) Describe the modern theory of rent. Explain how elasticity of supply of a factor affects rent. Use diagram. 10

(b) What is the marginal productivity theory of factors of production ? How does it explain the process of factors price determination ?

Q3.(a) Define public goods. Explain the rationale for government intervention in case of public goods. 10

(b) “A Pareto efficient allocation of resources occurs only in a_ perfectly competitive economy, where MRTSxy = MRSxy = a Explain with the help of an appropriate diagram. 10 [3] BECC

Q4.(a) Bring out the major areas in which WTO has facilitated agreements among _ its members. 10

(b) Discuss the impacts of WTO on Indian Economy.

Q5.What is price discrimination ? Explain price and output determination using third-degree price discrimination.

Q6.How does a tax imposed on rent affect supply of factor and rent rate ? Explain.

Q7.How does government intervention overcome the problem of negative production externalities ?

Q8.Explain the meaning of selling cost. How does selling cost affect price and output in monopolistic competition ?

Q9.Discuss the price criterion of relative factor abundance. 12 [4] BECC

Q10.The following information is given : 12 C=80+ Q2 P=40-Q Find the profit maximising levels of output and price.

Q11.Write short notes on any three from this Section : 8x4=12

(6) Dead-weight loss in monopoly Gi) Supernormal profit

(iii) Characteristics of monopoly

(iv) Quasi-rent

(v) Value of Marginal Physical Product (MPP) (@) see A HAL (factors of production) AT MRTSxy = MRSxy = C=80+ Q? P=40-Q