LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

SECOND SEMESTER – APRIL 2006

                                               EC 2801 – MICRO ECONOMIC THEORY – II

(Also equivalent to EC 2803/EC 2804)

 

 

Date & Time : 19-04-2006/FORENOON     Dept. No.                                                       Max. : 100 Marks

 

 

PART – A

 

Answer any FIVE questions in about 75 words each.       (5 ´ 4 = 20 Marks)

 

1. Explain the marginalist principle and the concept of ‘satisficing’.
2. Define the concept of Entry in Brain’s model of limit pricing.
3. Explain the theory of the Second Best.
4. Distinguish between input-output analysis and general equilibrium analysis.
5. Define the dominant firm price leadership and barometric price leadership.
6. Elucidate Pareto’s unanimity principle.
7. What do you understand by utilitarianism?

PART – B

Answer any FOUR questions in about 250 words each.   (4 ´ 10 = 40 Marks)

 

8. Compare maximization of utility function theory of Williamson with that of Scitovsky.
9. Critically appraise the managerial theory of Marris.
10. Discuss the various types of collusive oligopolistic market.
11. Define Game theory. How is it applicable to oligopolistic market situations?
12. Bring out the shortfalls of input-output analysis.
13. Elaborate the conditions of Pareto optimality. Do these conditions pave the way for promotion of social welfare under different market situations? Why?
14. Compare social welfare function with the compensation principles.

PART – C

Answer any TWO questions in about 900 words each.     (2 ´ 20 = 40 Marks)

 

15. Compare and contrast Mark-up pricing with Sales maximization model of the firm. Do you agree with the view that sales maximization model is superior to mark-up pricing? How?
16. Critically examine Sylo-Labim’s model of limit pricing with appropriate diagrams.
17. Compare and contrast the social choice theory of Arrow with that of A.K. Sen. In your opinion, whose view are agreeable to you? Why?
18. Critically examine the Walrasian equilibrium analysis. Do you think that it is a refinement over the Partial equilibrium? How?

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

RF 22

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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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

BC 36

SECOND SEMESTER – APRIL 2008

EC 2804 – MICRO ECONOMIC THEORY – II

 

 

 

Date : 17/04/2008            Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

PART – A

Answer any FIVE questions in about 75 words each.             (5 x 4 = 20 marks)

1. What is meant by zero sum game?
2. Are price and output under Oligopoly indeterminate? Why?
3. List out the factors which Bain considers as barriers to the entry of new firms.
4. Distinguish between Pareto efficiency and Pareto optimality.
5. List out the important features of technology matrix.
6. What do you understand by free rider problem
7. Write a short note on Rawl’s Maximin welfare criterion.

 

PART – B

Answer any FOUR questions in about 250 words each.         (4 x 10 = 40 marks)

8. “Managers seek to maximize balanced growth rate” – Discuss.
9. Explain a dominant strategy? How can firms decide about the optimal choice of a strategy in the absence of dominant strategy?
10. Illustrate the price and output determination under price leadership.

11.			User of outputs
			Agriculture	Manufacturing	Final demand	Total output
	Producers of inputs	Agriculture	75	125	100	300
		Manufacturing	100	150	250	500
		Labour	125	225	–	350
		Total Output	300	500	350	1150

• Given the transaction matrix find out the technology matrix.
• If the final demands for agriculture and industry change to 150 and 300 respectively, estimate the total outputs of agriculture and industry required to meet the new inter-industry demand and the new final demands assuming that technology matrix remain same.

12. Does perfect competition always ensure Pareto optimality and maximum social welfare? – Discuss.
13. Bring out the influence of externalities in economic efficiency.
14. Briefly explain the Arrow’s theory of social choice.

 

PART – C

Answer any TWO questions in about 900 words each.           (2 x 20 = 40 marks)

15. Briefly explain the W.J. Baumol’s maximization model of Oligopoly with advertisement expenditure, overhead cost, choice of output and input combinations and sales maximization.
16. Elucidate the Neumann-Morgenstern game theory with an illustration and bring out its criticism.
17. Elaborate the conditions of Pareto optimality and its criticism.
18. Critically examine the Kaldor-Hicks-Scitovsky’s compensation principle.

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

SECOND SEMESTER – APRIL 2012

EC 2808 – MICRO ECONOMIC THEORY – II

 

 

Date : 17-04-2012             Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

 

Section – A

 

Answer any Five questions not exceeding 75 words each:                                                      (5 x 4 = 20)

 

1. Define ‘satisficing’ and markup pricing.
2. Sketch out the features of oligopoly.
3. Define price leadership.
4. How is Baumol’s sales maximization model superior to the profit maximization model of the firm?
5. Explain the concept of managerial utility of Williamson in his theory of the modern firm.
6. What do you mean by financial constraint in Marris model of the firm?
7. Explain the concept of the compensation criterion of the Kaldor – Hicks.

 

Part – B

Answer any Four questions not exceeding 250 words each.                                                 (4 x 10 = 40)

 

8. Discuss the importance of Game Theory in showing oligopolistic market problems.
9. Bring out the importance of input – output analysis in economic theory.
10. Compare the marginalist theory with the Andrew’s theory of the modern firm.
11. Critically assess the Sylos model of limit pricing.
12. Explain the conditions of Amartya Sen for promotion of social welfare in a democratic country.
13. Discuss the different types of price leadership with diagrams.
14. What factors lead to market failure under Paretian welfare?

 

Part – C

Answer any Two questions in about 1200 words each.                                                       (2 x 20 = 40)

 

15. Critically examine Baumol’s model of the modern firm.
16. Explain price determination under conditions of price leadership in an oligopolistic market.
17. Discuss the drawbacks of game theory in providing solutions to the complex economic problems.
18. Bring out the advantages and disadvantages of Input-Output analysis in economic theory.

 

 

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