24 views

Uploaded by NikhilBhardwaj

mnbjhfvhgvmnbvnbvcnv nbvhgvjhv bnvchgfjhvnbv ng vbcghvmnmvhjghjv nbchgfjhvnbchjfjhnhgdfujvhmvjhvmhjfuygkjhvnv hvjgjghjgyjghjghjghjvbjhgjkgb hjbjyygjhjhgjhghjgjhghjghjghjghjgjhg bvjhghjgjhghjghjjhvnbcgfsdytfyuyu kjgituytuyryufuyfyufyufuyfuyfuyfthe

- Quiz 1(Repat)
- science project
- Ballb i Semester
- Mid Term Papers, NMIMS
- Expressions With Trade and Money
- Supply and Demand Word SearchSupply and Demand Word Search - WordMint
- economics project
- Quantitativemethods_modelpaper
- basicprinciplesintheapplicationofmanagerialeconomics-170108142343
- Managerial Economics for Mm Ft Semester 1
- Exercise 1 me
- Introduction to Economics
- Microeconomic Theory for the Social Sciences
- Macroeconomics Excel Equilibrium Neokeynesian
- Corrupt Societies Encourage Lying
- dec2010
- sacred economics summary fall 2012
- Cost-data.pdf
- Syllabus
- Economics

You are on page 1of 12

of Printed Pages : 12

MEC-001

MASTER OF ARTS

(Economics)

Term-End Examination

June, 2011

MEC-001 : MICRO ECONOMIC ANALYSIS

Maximum Marks : 100

Time : 3 hours

SECTION - A

Answer any two questions from this section. 2)(20=40

1. (a) Why would you consider Pareto efficiency

conditions in multimarket equilibrium of an

economy ?

(b) Suppose that a pure exchange economy

consists of two consumers A and B and two

commodities 1 and 2. The endowments of

2

two goods are (0A = ((DA 10, (DA 10) and

N00

\

(1) B = 0113'---8, -B =4 )

CD

( p, 0.05

2 0.05

Up -n x

( xA

1

and

\ 0.25 .75

( 2 )0

xB

UB= XB )

model.

MEC-001

P.T.O.

2.

with firm-1 as the leader. The market demand of

their product is given as P = 30 Q with

Q = Ql + Q2 and marginal cost (MC) = 12. Find

the stackelberg solution of the model. How does

the solution compare with cournot model ?

3.

differentiate between the problems of

adverse selection and moral hazard.

(b) An employer plans to hire a worker for

producing an output and would like to sign

a contract with him. The value of the output

)

Where e = effort exerted by the worker ;

E = chance

factor.

Further, it is known that e =1 when worker

does the work and e = 0 when he shirks with

shirking (e = 0), the value of output

produced would be 100 with probability

1

3

hand, when he exerts efforts (e = 1), the

value of output produced would be 100 with

3

probability

4 and 60 with probability 41 .

Assume that the employer is risk-neutral

and chooses to maximize his expected

MEC-001

utility function is u = f , where

x = earning, i.,e, wage less of cost of efforts.

The cost of effort is given to be 10 when e 1

and 0 when e = 0. Let there be a negotiation

proposal that has provision to Pay w =SO if

y =100; and w = 70 if y = 60.

(i) If the employer plans to pay fixedwage, i.e, w is independent of y, what

level of effort will the worker choose

if he agrees to sign the contract ?

Which fixed-wage contract will the

employer choose ?

(ii) If the employer proposes to pay all

output to the worker, i.,e, w = y, will

the worker still shirk ? Will the

contract acceptable to the worker ?

Explain.

(iii) Comment on incentive compatible

constraint and participation constraint

of (a) and (b) above.

4.

provision of a public good. Show that if the sum

of the marginal rates of substitution adds up to

more than the marginal cost, then more of the

public goods and less of the private good should

be produced.

MEC-001

P.T.O.

SECTION - B

Answer any five questions from this section. 5x12=60

5.

u (y)

8, she will receive Rs. 400. Otherwise she receives

Rs. 100.

(a)

(b)

(c)

before the dice is rolled so that she gives up

the prize ?

(d)

alternative prize of Rs. 169 without the

conditions of rolling the dice. Will she

accept this alternative ? Give reasons in

support of your answer.

MEC-001

6.

and player-2

3

Il

(a)

(b)

of this game.

7.

His utility function is given as U=C t Cr The

income stream flowing to him during the

period 1 and period 2 is yi 800 and ii/2 =, 648. If

the market rate of interest is 8% per period,

determine his optimal consumption values in the

absence of permanent savings.

MEC-001

P.T.O.

8.

y are two goods and' p. and py denote their prices.

If M is the income of the consumer, derive the

expenditure function.

9.

profit of at least 334. Her demand and cost

functions are p =100 4q and c = 50 + 20q.

Determine her output level and price in the

ecluilibrium. Contrast these values with those that

would be achieved under profit maximising

objective.

10.

Max N

ey

(13) Pi

yin= a 7(p)

a Pi

11.

C =0.03 q3 0.6q2 + 10 q +6. Find its short run

supply function.

12.

(a) Public goods and merit goods

(b) Cobb-Douglas and CES production

functions

(c) Slutsky and Hicksian approaches to effect

of price change.

MEC-001

TT:7. (3T1T W )

fll(ci TAVT

'TT, 2011

71:14*-001 : 7W:Ir al*Mq. ftqAtrur

3TiWc171W :100

?7TR7 : 3 tro"E'

7Ye'

'ITPT

2x 20 = 40

1.

(a)

ftTfr 3-Pt5T-qT-24-r

TR-TRT -vA

(b)

3-Trci

fi-cTrT .471)'

?

'Nf:14-14 3-1.2.-11

t3741TTIA3tBatt -4-91141{

- 2t1

-Tpt

)A =

fif%Pif :

H2 = 4)ik 31-14 1 r

/3 = 8,

\ 0.05

UA

I 2 \ 0.05

xA )

xA )

025

U8.-=( x113 )

2 075

( X13)

MEC-001

-11z- , I

P.T.O.

2.

1TF

fwtt 3tit t

4 (41s

3frT 2 t

t-

,16

GUAR 1:67 t

(--11-11Nri ql1c1 '4f77

TfRiqrff

3.

5t-i

t 774 t# qc-v11 t?

14 Tff-d-fa. r.4-f 31171-d- -w

Ticrcz

dc41q-1

(b)

ch14-1,1R

3-fR

#01;ITE

(-11c11

4Giq

t 3c,-Ilc-I (y) Ff

30: e= ch14-1,1It gltf f u

E = si IRich

31T4,

\IN

WH I

e=1

'3W

cl-)14-14IIt cbIH

-q1(-11 t

1

miNcroi

4

, 3

,HT-{

4

Tffn

AT miNcnot

1:TN,

II

T1T4

dculIq-f

100

f *1011

t

Silt e = 0

= f (e, )

YIRIalcIl

3

4 t 7112T

1

cn 7412-T 60 i1411 I HI-I

4

fm

t 31-17 3474 Ycql

. 1941 .0 - ,-f---lcbc-14-174 chi qTi

ti chp-oiR

t

u= ft

MEC-001

Plcli

a42110

x=

8

TfziM

e= 1 3

0

Acfe=0 4-11-1 I- FTA7ft 11'71720-dr7T?rr-cT t76

317T

T -511--dqT9 34541, NN = 80, "Ifq y =100;

(-111 1c1 10 t

w =70 1f y=60

(i)

o (fixed) (719

F-1411-01

w, y

\31-11 ci-11(11

q-)triT

c=1 1-)tR-1

T-qt)T t

ITT TR1TP-F

rcm t ?

q11 Trt tf

Trr f9.9fRo

1-)kR-114-11

-5711-17 "Midf

3-171

3P-rfq, w=y

349.11 .111 ,4,141 -71 TRni ?

a II ? TuftZ

qzfr 11(R-114-11, ch1--1411(

I

#T17

3Tqnq 34

.q9 -k

4.

tq

c4

trk 7fa-T-wl-q

311

t ttsf t-114,4F-14)

414-)(4, TiThcifff opid

W11771 T'rrr-7

-q711 3-ifw

-frgi-d cr)

mit

MEC-001

P.T.O.

4r

5.

5x12=60

APT

i 3LKI

,-174

-cr.fT4

11-T-4 (roll) -ER filfT m--Tur t -7-fq

3, 4, 6 TIT 8, rilcn t 400 T. #1-44 3-1P42.11

It I

100 T. M-1 -51rftu

zr

(a) Tilif

-114-1* *-1,54.q

(b)

agrr4

(c)

3Trizr0 7-4-qr

k4I14-1 W)-7 I

trtrrr

(d)

MEC-001

Ncqirklo

01-61it?

K41

q-it LIT -0

f-*-7 N-Ir 169 T. t ;61C-Lict) *-II 4-1 -5117 T4

t I qzr1ci7T -ra--*--Fzr -0Tzft-*-R

rnt

? 3Ttrt 3Lit c1IssZ 4'741 -WM*

---1C-A7 I

10

6.

- 2 gm tA

F(5014)-1 at

9T-91-fftrd itrm

65

3

0

(a)

ti *7

TriZ c r T

(b)

7.

f- 7t

5 -1(-1-)1 3-11-6111

TT t I

MEC-001

4 161Fr

3114,

chic'LIF-1 011 dLil-frqcir 4t fq'TriR -q111

f-1 4-11*10

cilAR

t-114C1c-f

64

3-74 yi =800

y, 648 -qt -c9:1T7 q):t

7r ,34qN 8% t, c

'-1Tt ql-d- -4; 339.11q.

I

Tut 4)1f4NiTIT I

11

1 2

Plc11 Lnci-t u=x3 y3 t

FlfA7r ch

8.

x 3Ry

py 79t. -117ff

px

LI1c1-1

dLIAqmw- 3-Trzity

oeecFT

T1f7q

J.

cii4 to

:

TAt71 r41ciT t. I 3-Tlt 4-1741

37 afq--d-gfl-

p=100-4q

& .-TILF4 z.t 1i1c4t4-11-1

-1 oh')

-q-tr71-q

-9-ifq

31"citi

7)-Tfr

10.

Max

(P) Ey

(P)=

t9-47zi 74Ti

71

Wt :

(P) Pi

i=1

.7q11.7"-qkrii4

-Tirf

4,1 Th7f9 t :

,

(11

11.

t-114

(P)

c Pi

TftTT 1141ti

TT

7iff

12.

Ric-) 3-i11cft

tfr

atd7

(a)

-114,Akc=

(b)

ci;14-5'1(-1q TE ft 771

(c)

T7T Trfr-q-cti

rr

71TriVi

5-ffsartri

12

Lbol I

- Quiz 1(Repat)Uploaded byMamta Sharma
- science projectUploaded byapi-276911762
- Ballb i SemesterUploaded byVasim Ahmad
- Mid Term Papers, NMIMSUploaded byLuis Nash
- Expressions With Trade and MoneyUploaded bySanja Ilievska
- Supply and Demand Word SearchSupply and Demand Word Search - WordMintUploaded bySandy Saddler
- economics projectUploaded byAkhil Suman
- Quantitativemethods_modelpaperUploaded byEswarFICO
- basicprinciplesintheapplicationofmanagerialeconomics-170108142343Uploaded byDanyal Chaudhary
- Managerial Economics for Mm Ft Semester 1Uploaded bySohit Gautam
- Exercise 1 meUploaded byaleenz0784
- Introduction to EconomicsUploaded byRuby Mallah
- Microeconomic Theory for the Social SciencesUploaded byYannick Gábor Kadvány-Hochuli
- Macroeconomics Excel Equilibrium NeokeynesianUploaded bydphamhi
- Corrupt Societies Encourage LyingUploaded byHoneyLopes
- dec2010Uploaded byS Kalu Sivalingam
- sacred economics summary fall 2012Uploaded byapi-204506100
- Cost-data.pdfUploaded byGimhan Godawatte
- SyllabusUploaded bycooldudeashok
- EconomicsUploaded byanon-958238
- MB0026-Eco Questions CompiledUploaded bymyuploads
- Entrepreneurial Marketing PlanUploaded byclark vick
- sacred economics summary fall 2012Uploaded byapi-204506100
- Eco Presentation CopyUploaded byDavid Taylor
- US Federal Trade Commission: 232017Uploaded byftc
- econrptUploaded byrslisbon
- Robustness of the attraction effect in consumer choice and its consequences for the firmsUploaded byAlexia Gaudeul
- 3 Money MarketUploaded byBindal Heena
- 32ML_USUploaded byrenewcor
- production of cultureUploaded byNatalia Chicharrita

- Manish Sehrawat ResumeUploaded byNikhilBhardwaj
- nikhil.docxUploaded byNikhilBhardwaj
- nikhil.docxUploaded byNikhilBhardwaj
- Woodland Project ReportUploaded byNikhilBhardwaj
- Summer Internship ProjectUploaded byNikhilBhardwaj
- Darjeeling TeaUploaded bychittascribd
- TATA Group Project (1) (1)Uploaded byNikhilBhardwaj
- Domino s ProjectUploaded byNikhilBhardwaj
- Desk Research AssignmentUploaded byNikhilBhardwaj
- Apple Csr Doc HelpUploaded byHüseyin Cihan Çelik
- Sip ProjectUploaded byNikhilBhardwaj
- Ethical Issues in ItUploaded byNikhilBhardwaj
- 5-IMF World Bank WtoUploaded byNikhilBhardwaj
- Front Pages (1)Uploaded byNikhilBhardwaj
- The Sick Unit & case study NICCO BATTERIESUploaded byabhinav
- llUploaded byNikhilBhardwaj
- perception.pptUploaded byNikhilBhardwaj
- PawanUploaded byNikhilBhardwaj
- revisedMBA gen syllabus 2016.pdfUploaded byNikhilBhardwaj
- revisedMBA gen syllabus 2016.pdfUploaded byNikhilBhardwaj
- Copy of MS Excel FormulasUploaded byKazi Anas
- Satyam Fraud - Ethical Corporate GovernanceUploaded byNiharika Swaroop
- Customer-Satisfaction-at-Mcdonald.docxUploaded byNikhilBhardwaj
- DeliveredUploaded byNikhilBhardwaj
- Excel Formula1Uploaded bysimplykishore125
- biploUploaded byNikhilBhardwaj
- 50079159-COMPLETE-PROJECT-ON-HR.docUploaded byNikhilBhardwaj
- 50079159-COMPLETE-PROJECT-ON-HR.docUploaded byNikhilBhardwaj
- Mahatmagandhi 141110074418 Conversion Gate02 (1)Uploaded byNikhilBhardwaj

- Swot analysis for MeruUploaded byDeepika Vundavalli
- Get the Details about Bajaj Finserv Personal LoansUploaded byArwind Sharma
- 77548767-Assignment-Marketing-Strategy-Nguyen-Trong-Tung-MKT306.docxUploaded bypriya
- Internship report..docxUploaded byMuhammad Yuli Budiman
- Customer Acquisition 1Uploaded byRahul Kate
- SCM_Q3.pdfUploaded byAmrutanarkhede
- 6.Marketing PlanUploaded byPunitha P
- NB000415Uploaded byAvrupa Birliği Enstitüsü
- NestleUploaded byPratik
- Case 1 - AutoTradeUploaded bynovypoo
- 3M Case Study (1)Uploaded byYasir Alam
- GATP_SAPUploaded bymehta_avi
- C2C Herman Miller Ppt (Group B).pptxUploaded byGaurav Shroff
- JostensUploaded byBilly24Jo
- How Tide Cleaned Up the CompetitionUploaded bySumanto Sharan
- SwissRe US Economic Outlook Nov 2017Uploaded byAurimarCerqueira
- doc950Uploaded byfaisal042006
- Answer Tutorial 5 Week 7 Market StructureUploaded byDylan
- EssayUploaded byNhãPhương
- Retail ManagementUploaded byAsmita Shashank Tayshete
- Internal Audit Manager in San Jose CA Resume Andrew KatcherUploaded byAndrewKatcher
- Case Study on DunhillUploaded byMuhammad Saud Masrur
- Research Paper - Food Safety standards in UK Food Transportation (Feb 2017)Uploaded byLiam Jennings
- Case Study on Cafe Coffee Day - Brand Strategy in India (PDF), Organized Retailing Case StudiesUploaded byShubham Singh
- A Project Report On IBMUploaded byNiravOzaII
- Chapter 02 Market Research CBUploaded byRizwan Saleem
- Inventory DiscussionUploaded byErick Monte
- 36759537-big bazar-Project.pdfUploaded bysurajrtk
- unit 5 crosswordUploaded byapi-356491391
- z38c InvoiceUploaded byAnonymous nPuSf9Q