LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
M.A. DEGREE EXAMINATION – ECONOMICS
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SECOND SEMESTER – APRIL 2007
EC 2804/EC 2803/EC 2801 – MICRO ECONOMIC THEORY – II
Date & Time: 17/04/2007 / 1:00 – 4:00 Dept. No. Max. : 100 Marks
Part A
Answer any FIVE questions in 75 words each (5 x 4 = 20 marks)
- “In the Modern World the firm is a highly complex organization. It is characterized by separation of ownership and management” – Is it agreeable to the Neo-Classical Economists?
- Outline the postulates of Sylos’s Model of Limit Pricing
- Distinguish between Cartel and Price Leadership.
- Explain the conditions of Pareto Optimality for promotion of Social Welfare
- Explain the concept of Social Welfare Function
- Explain the concept of Social Choice propounded by Amartya Sen
- Define the concepts of Pay off Matrix, Strategies, Players. How are these concepts applied in Oligopoly?
Part B
Answer any FOUR questions in 250 words each (4 x 10 = 40 marks)
- Bring out the differences between Andrew’s interpretation of Mark up Pricing and Hall and Hitch views of it.
- Critically appraise the Maximization Utility Function Theory of Scitovsky.
- Critically analyze Sylos’ Model of Limit Pricing.
- What do you mean by Saddle Point? Explain it applying the concept of Pay off Matrix. How is it a deviation from the Nash Equilibrium?
- “Social Choice Theory of Arrow is an improvement over Social Welfare Function Theory of Bergson” Substantiate it with reasons.
- Compare Price Leadership with Limit Pricing
- What are the features of Input – Output analysis? How is it fruitful to formulate economic policies in India?
Part C
Answer any TWO questions in 900 words (2 x 20 = 40 marks)
- “Neither the managerial discretion nor the managerial enterprise Model replaces the traditional Economic Theory of the firm” – Comment
- Enumerate the conditions required for the success of Collusive Oligopoly. Do you consider that collusion is beneficial for Oligopoly firms?
- What are the demerits of Input – Output analysis? Do you think that it is an extension of production function? How?
- Critically examine Sen’s Social Choice Theory. Do you think that his interpretation is relevant to Indian Democracy? How?
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