[This question paper contains 6 printed pages.] Sr.No. of Question Paper : 6682 FC Your Roll No.. Unique Paper Code : 22415101 Name of the Paper : BCH-1.4 (a) MICRO ECONOMICS Name of the Course : B.Com (Hons) CBCS Semester cn Duration : 3 Hours Maximum Marks : 75 Instructions for Candidates 1. Write your Roll No. on the top immediately on receipt of this question paper. 2. The paper is divided in five Questions. 3. All questions are compulsory. 4. Marks are indicated against each questions. 5. Answers may be written in Hindi or English but the same medium should be followed throughout the paper. ‘pra & fay fs Lower & fat ft ser faq ay faults eat oe aT argue FRRay 2. Ue dia ve A der gon 21 3 wit wer aftard 81 4, aeRE wea SB aery aif 21 5. FAM Wa SI Se Shee a PA fa ee eT A Sif, aa wh sad ar wea UH, 8 et ae (@) Differentiate between cross-elasticity and income elasticity of demand. (7) (b) Explain with the help of indifference curve theory Price effect as a combination of Income and Substitution Effect for normal goods for a fall in price. (8) OR (a) What are indifference curves? Disouss their properties. q (b) Derive an Engel curve. Explain the relationship between Engel curve and Demand curve. ® P.T.O.6682 2 (#) wia-aita ae ain Baraat W afar aeaRe (a) aie Freae: & fae aa aegall Saar, oer aie vfteora oH ator Bor, saa TH Rigia A, ora aw ot aera 8, ae were! aaa (&) seftera am aan et 2? grat fava st asa sf (@) wae am ert fig Gate ae sie Hit awe FH ae a ae afar! 2. (@) Explain the laws of Return to Scale. Show the three kinds of returns to scale with the help of isoquants. : (8) (b) Explain the shapes of short run cost curves. Analyse the relationship between Average Cost (AC) Average Variable Cost (AVC) and Marginal Cost (MC). @) OR (a) Distinguish between : (i) Fixed cost and variable cost (4) (i) Explicit cost and Implicit cost (4) (b) Explain the law of variable proportions. What are the different stages of production? o (&) ‘Ret get’ B Ae at aren aires oneterdel at wee A Ret ga aA frei a vefifa wie (@) serait ara wat at weet at aren aif sitart wert (AC), sitet afat aia (AVC) site dia aera: (MC) 3 dt ear amr Paectomr are aera (@) Frater 3 fae ware: @ fer aire ak aftadt arnt6682 3 3. 4. @i) Baa ara ak safe aT (@) afadt agqaet & far at omen afirg seer a fafler aac ge FP (a) Explain equilibrium of a firm under perfect competition in the short run. What is the shut down point? (7.5) (b) Explain and distinguish between short run and long run producer surplus under perfect competition. (7.5) OR (a) A firm operating under perfect competition maximizes profit in the long run by producing where price equals long run marginal cost. Explain with the help of diagram. (7.5) (b) Derive diagrammatically the long-run supply curve of a perfectly competitive industry in the case of increasing costs. (7.5) (&) aeraft ¥ pt sfterel S sink we S ager at omen aifire genet aa fig aM Bhat 3? (@) Vi after & sista srewahy sik Gatatty geareer aftrdee H fae oft sare aA erat > (as) ph after sient wer veto teat Hwa ae a aren anc # ora, xe, Safar Sara aera Hae ett 21 site at ee B sae ase (@) arrat & at wy ia: ven sat F atofafy off aa at site er A qe aiifaret (a) Explain with help of diagrams how a monopoly firm reaches the price-output decisions in short- run periods and long -run periods. (7.5) (b). What is the'Sociaficost of monopoly power? Explain with the help of diagram. (7.5) PLO.6682 4 OR (a) Explain the degrees of the price discrimination. (7.5) (b) Explain the difference between monopoly and pure competition. (7.5) (&) afte at wee 3 omen afer far wana wi fare war, seal are site Aefatty are eorar—seores Pek ae weet 21 (@) want afta Bt anf cere sar shit 2? site at wee B sae Hifsres wera (&) ata fate a RAY At eer aiferer (@) werftrent sit qa afteral ¥ sae at aren aifare 5. (a) Explain diagrammatically the price and output decision of monopolistically competitive short run and long run. (7.5) (b) Explain the Cournot’s model of duopoly. (7.5) OR (a) Describe the kinked demand curve in Sweezy’s model of duopoly. (7.5) (b) What is a dominant price leadership? What can pose a potential threat to ~*~“ this type of price leadership?” TS) (a) werner er afte srearater site Gefae etter site Teerert Poker At sated 314 orem aie (@) gate F atate aise a caren afore erat (&) atte & eioit-aiss F carga sia ae a avis aAifSrel (b) What is the social cost of monoposy jo 8 07 Explain aici the help of dia, (@) wordt aire Ages ae Shan 3? wa ve SF stad Ages st ats aaa era 2 Tera a6682 5 Note: Questions for the visually impaired students only. daa way gt a saat ori @ fey we 1. What are the determinants of price elasticity of demand? ‘ita Bt atta ta S eifes eer 8? ORSeraT What is cardinal utility approach? What are its assumptions? Fea svaNh sort ear eat 2? ead afttre gar 87 2. Explain the properties of isoquants. ardadat af Ratrastt a are afar OR/sterat Distinguish between: (i) Fixed cost and variable cost i) Explicit cost and Implicit cost Prefeftat ¥ site aarey: @ fee art sit uRaat arr (i WAT are ote siahaffa ae 3. What is perfect competition? What are its assumptions? wel afterut aan eat 8? zach afters aor 27 OR/eraT as) (15) qs) (7.5) (1.5) (is)6682 6 Explain producer surplus of a perfectly competitive firm. (1s) ple: afte wi a cerca afte at ere aiiferes 4. Explain the difference between monopoly and pure competition. (15) vantiant sit qe vfterat a ata stat at aren aifare OR/Heat Explain the degrees of the price discrimination (15) dtd fate at fait at aren afer 5. What is a dominant price leadership? What can pose a potential threat to this type of price leadership? (13) wordt sitet Aged wen Ser 2? Hera Ages St ga fever at aaa eat te weet 2? OR/sterat What is monopolistic competition and what are its distinctive features? _(15) vernfrantt ufteral aa 2 sie guatt faire fadrany aera? (700)