LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A. DEGREE EXAMINATION – ECONOMICS

BC 53

SECOND SEMESTER – APRIL 2008

E 218 – APP. QUANT. ECONOMICS

 

 

 

Date : 05/05/2008                Dept. No.                                       Max. : 100 Marks

Time : 9:00 – 12:00

 

PART – A

 

Answer any FIVE Questions.                                                            (5 x 4 = 20 marks)

 

1. State Marshallian demand function.
2. What are the two major characteristics of CES production function?
3. Distinguish between Pure Strategy and Mixed Strategy.
4. Define marginal product.
5. Distinguish between substitutes and complements.
6. What is isoquant?
7. What is saddle point?

 

PART – B

 

Answer any FOUR Questions.                                                          (4 x 10 = 40 marks)           

 

8. Mention the assumptions of linear programming.
9. Maximize U = q_1, q₂²-10q₁, subject to 2q₁ + 8q₂ = 116.
10. Discuss the different types of elasticities.
11. Explain the properties of Perfect competitive market.
12. Determine maximum profit if Q = 20 – K² + 10K – 2L² + 5L where P_k = 2, P_L = 1, P_Q = 5.
13. Explain the properties of indifference curves.
14. Show that average cost and marginal cost functions intersect at the lowest point of the Average Cost Function.

 

PART – C

 

Answer any TWO Questions.                                                            (2 x 20 = 40 marks)        

 

15. Derive the Slutsky’s equation and give its interpretation.
16. Show that the Cobb-Douglous functions is homogeneous of degree one.
17. Maximize 45X₁ + 55X₂ subject to

6X₁ + 4X₂ ≤ 120

3X₁ + 10X₂ ≤ 180

X₂ ≤ 25

X₁, X₂ ≥ 0

18. Derive the first and second order conditions for profit maximization in monopoly.

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