LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
M.A. DEGREE EXAMINATION – ECONOMICS
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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)
- Explain the marginalist principle and the concept of ‘satisficing’.
- Define the concept of Entry in Brain’s model of limit pricing.
- Explain the theory of the Second Best.
- Distinguish between input-output analysis and general equilibrium analysis.
- Define the dominant firm price leadership and barometric price leadership.
- Elucidate Pareto’s unanimity principle.
- What do you understand by utilitarianism?
PART – B
Answer any FOUR questions in about 250 words each. (4 ´ 10 = 40 Marks)
- Compare maximization of utility function theory of Williamson with that of Scitovsky.
- Critically appraise the managerial theory of Marris.
- Discuss the various types of collusive oligopolistic market.
- Define Game theory. How is it applicable to oligopolistic market situations?
- Bring out the shortfalls of input-output analysis.
- Elaborate the conditions of Pareto optimality. Do these conditions pave the way for promotion of social welfare under different market situations? Why?
- Compare social welfare function with the compensation principles.
PART – C
Answer any TWO questions in about 900 words each. (2 ´ 20 = 40 Marks)
- 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?
- Critically examine Sylo-Labim’s model of limit pricing with appropriate diagrams.
- 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?
- Critically examine the Walrasian equilibrium analysis. Do you think that it is a refinement over the Partial equilibrium? How?