Introductory Microeconomics
BBA | BBA-BI | BBA-TT | BCIS | BHCM
Old Question Paper
Year: 2009 | Semester: Fall
Pokhara University
Exam 2009 Fall
1. a. What is market equilibrium? Show how equilibrium price is determined in a free market economy? [7]
b. What are the problems of scarcity that the society faces? In what ways does specialization reduce the problem at scarcity? [8]
2. a. Differentiate between Cardinal Utility Analysis and Ordinal Utility Analysis. How does a consumer get equilibrium under Cardinal Utility Analysis. [7]
b. State the law of demand. Why does it slope downward from left to right? Does it hold true for giffen goods? Why? [8]
3. a. Suppose that your demand schedule for compact discuss is as follows: [8]
| Price | Quantity demanded
(income =$ 10,000) |
Quantity demanded (income =$ 12,000) |
| $ 8 | 40 | 50 |
| 10 | 32 | 45 |
| 12 | 24 | 30 |
| 14 | 16 | 20 |
| 16 | 8 | 12 |
i. Calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if your income is $10,000.
ii. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if the price is $14.
b. What is meant by consumer’s equilibrium? Show the consumer’s equilibrium with the help of indifference curve approach. [7]
4. a. Explain the production theory with two variable inputs. [8]
b. From the following cost function calculate TFC, AFC, TVC and AVC. [7]
| Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| TC | 120 | 180 | 200 | 210 | 225 | 260 | 330 |
5. A firm has demand function P=4-2q and cost function C=q^2+2q.Find, [15]
a. Equilibrium price that maximum profit
b. AC, MC, AR and MR at equilibrium price and quantity.
6. a. Explain the typical shape of short-run average fixed ,average variable, average total and marginal cost curves. [7]
OR
Explain the derivation of long-run average cost curve. [7]
b. What is factor price? Explain the determination of factor price in an imperfectly competitive market in long run. [8]
7. Write short notes on (Any Two) [2×5]
a. Isocost curve
b. Nature of Average Revenue and Marginal Revenue Curves
c. Shift in Demand Curve
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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