1. Equation of total revenue (TR) is given below
TR = 100Q – Q2
If Q =3 than calculate average revenue and slope of average revenue.
2. Explain the traditional theory of firm with the help of its basic equation.
3. Give the degree of discrimination of the following
a. an electric power supply company uses block prices for electric sales.
b. An airline company charges different ticket rates to passengers
c. Tennis court owner charges different from child and young ones
d. Producers sells commodity abroad at lower price and higher price in local market
e. Doctor charges high prices to rich than poor.
4. What would be the shape of indifference curve in each of the following?
a. A, B are two brands of the same product, consumer can not tell the difference whether which is good or preferred.
b. X is good and Y is bad like household refuses.
Paper 2:-
draw an inderence curve (5)
a)for complimetary good like left shoes and right shoes.
b)for perfect substitues like coca cola and pepsi.
identify the five situations in which costel can survive(5)
what would indifference curves like in each of the following case?(3)
a)x and y are two brands of same products, and consumer cannot tell them apart.
b)x is good and y is bad – like household refuse.
Paper 3:-
ECO 401 Subjective
Assuming that supernormal profits can be made in the short run in a monopolistically competitive industry; will there be any difference in the long-run and short-run elasticity of demand?
Question No: 36 ( Marks: 5 )
Compare the characteristics of perfect competition and monopolistic competition with examples.
Question No: 37 ( Marks: 5 )
A. Derive the equation of budget line. Which part of the equation shows the slope and which part shows the intercept?
B. Which factors cause the shift in budget line and which cause the change in slope of budget line
- A. Define “Law of supply” and explain it with a schedule and diagram.
- B. What are the factors which cause the shift in market supply curve?
- C. What will be the role of firms in case of maximin strategy and maximax strategy regarding profit?
- What is the relationship between marginal product of labor curve and total product of labor curve
- E. Missing figure
|
Q |
P=AR |
TR |
MR |
|
1 |
9 |
||
|
2 |
8 |
||
|
3 |
7 |
||
|
4 |
6 |
||
|
5 |
5 |
||
- a. Define the law of diminishing marginal returns. The total physical product of labor is given in the following table; calculate the average physical product of labor and marginal physical product of labor.
What is the key difference between the short run and the long run for the profit-maximizing firm?
Question No: 36 ( Marks: 5 )
- A. Why the firm experiences economies of scale and what will be the shape of long run average cost curve in this case?
- B. Why the firm experiences diseconomies of scale and what will be the shape of long run average cost curve in this case?
(Marks: 2.5+2.5)
Question No: 37 ( Marks: 5 )
Define price taker firm and price maker firm. Also discuss in which type of market structures these firms exist?
Paper 4:-
Question No: 1 ( Marks: 1 ) – Please choose one
In a free-market economy, the allocation of resources is determined by:
► Votes taken by consumers.
► A central planning authority.
► Consumer preferences.
► The level of profits of firms.
Question No: 2 ( Marks: 1 ) – Please choose one
Ceteris paribus means:
► Equal access to public transportation.
► Other things being equal.
► Other things not being equal.
► All things considered.
Question No: 3 %C