1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – OCTOBER 2014

B.B.M – I SEMESTER

 MICRO ECONOMICS

Duration: 3 Hours                                                                                       Max. Marks: 100

SECTION – A

 

1. Answer ALL the questions. Each carries 2 marks.                                       (10 x 2 =20)

 

1. Differentiate between a plant, firm and industry.
2. State the Law of Demand.
3. Mention any four factors which influence pricing.
4. Explain the concept of Opportunity Cost.
5. Show the Law of Variable Proportions with the help of an appropriate diagram.
6. What is Marginal Revenue?
7. Give any four determinants of supply.
8. Describe the relationship between AC and MC curves.
9. What do you understand by the term Price Discrimination?
10. What isVeblen Effect?

 

SECTION – B

1. Answer any FOUR Each carries 5 marks.                           (4×5=20)                          

 

11. What do you understand by the terms Micro and Macroeconomics? Differentiate between the two concepts.
12. Define indifference curves. Give the properties of indifference curves.
13. What will be elasticity of demand if

(a) Total expenditure increases due to increase in price.

(b) Total expenditure increases due to fall in price

Explain with the help of an example.

 

14. What is the short run cost curve? Find the AC and MC from the table given below:

Output	0	10	20	30	40	50
TC	400	480	550	590	620	650

 

15. Explain the Law of Returns to scale. Do you think it is applicable in real life?

 

16.    Differentiate between perfect competition, monopolistic competition and monopoly.

 

SECTION – C

III)      Answer any THREE questions.    Each carries 15 marks.                     (3×15=45)

 

17. Suppose an industry is characterized by the following characteristics: large number of buyers and sellers, differentiated products, few barriers to entry and exit. Explain how the firm and industry will attain equilibrium in the short and long run. Also, decide the type of market this industry falls in.

 

18. How is pricing important? Discuss the various methods of pricing.

 

19. Discuss the various economies and diseconomies of scale that a large scale business experiences.

 

20. Critically examine the Law of Diminishing Marginal Utility.

 

21. What is price elasticity of demand? Explain the various degrees or types of price elasticity of demand. Also, mention any four factors which influence elasticity.

 

SECTION – D

1. IV) Case study- Compulsory questions.    (15 marks)

 

22. The luxury car sector is a classic example of monopoly in spare parts, servicing and repairs. Its service leaders are earning extraordinary profits.

Often one has to change a spare part and have to pay a high price.

The replacement of small things such as a silencer or a clutch plate may cost 5-6 thousand rupees. The cost of spare parts is reckoned to be three to four times of the middle range car sector.

Defective parts and exorbitant cost of repairs make these cars difficult to maintain. The luxury car owners are in a dilemma. They cannot get spare parts except for authorized dealers and they are charged fantastic amounts with no product guarantee.

 

1. Define a monopoly. State its features.

 

1. Can you put the luxury car sector into monopoly? Which sector does it enjoy monopoly. Give an example of any such car industry.

 

 

 

 

Latest Govt Job & Exam Updates:

View Full List ...