MEC
101 Solved Assignment 2021-22
MICROECONOMIC
ANALYSIS
Course Code: MEC 002
Assignment Code: MEC 002/2021-22
Total Marks: 100
MEC 101 Solved Assignment 2021-22 : All assignments are in PDF format which would be send on email/WhatsApp (9958676204) just after payment.
SECTION A
Answer
all questions from this section.
2×20 = 40
1. (a)
“In terms of the type of good, that is whether a good is normal or inferior,
the relationship between the compensated and the uncompensated demand curves
varies,” Justify the statement graphically.
8
(b) A
consumer’s preferences over goods A and B is given by the utility function
U (A, B) = 𝐴 1 2 𝐵 1 3
Let pA
be the price of good A, pB the price of good B and let consumer’s income be
given by I.
6
(i)
Derive the indirect utility function
(ii)
What is meant by Dual problem in context of the Utility and Expenditure
optimisation exercise?
6
2. (a)
While modelling Insurance markets in presence of asymmetric information, a
Separating equilibrium is often preferred instead of a Pooling equilibrium.”
Justify the statement. Under what conditions, a separating equilibrium may also
not exist.
6
(b)
Given the von Neumann-Morgenstern utility function of an individual, U (W) = 𝑙𝑛𝑊 where W
stands for amount of money and ln is the natural logarithm. Comment upon
attitude towards risk of such an individual with the help of a diagram.
6
(c) Now,
suppose this individual plays a game of tossing a coin where he wins Rs 2 if
head turns up and nothing if tail turns up.On the basis of the given
information, find
(i) The
expected value of the game.
4
(ii) The
risk premium this person will be willing to pay to avoid the risk associated
with the game.
4
SECTION B
Answer
all questions from this section.
5×12 = 60
3. (a)
Differentiate between the Cournot and the Stackelberg models of Oligopoly.Under
the Stackelberg assumptions, the Cournot solution is achieved if each firm
desires to act as a follower. Do you agree? Elaborate.
6
(b) A
monopolist operates under two plants, 1 and 2. The marginal costs of the two
plantsare given by
MC1 = 20 + 2q1 and MC2= 10 + 5q2
Where q1
and q2 represent units of output produced by plant 1 and 2 respectively. If the
price of this product is given by 20 –3(q1 + q2), how much should the firm plan
to produce in each plant, and at what price should it plan to sell the product?
6
4. (a)
Consider there are two firms 1 and 2 serving an entire market for a commodity.
They have constant average costs of Rs 20 per unit. The firms can choose either
a high price (Rs 100) or a low price (Rs 50) for their output.When both firms set
a high price, total demand is1000 units which is split evenly betweenthe two
firms. When both set a low price, total demand is 1800, which is again split
evenly.If one firm sets a low price and the second a high price, the low-priced
firm sells 1500 units, the high-priced firm only 200 units. Analyse the pricing
decisions of the two firms as a non-co-operative game and attempt the
following:
6
(i)
Construct the pay-off matrix, where the elements ofeach cell of the matrix are
the two firms’ profits.
(ii)
Derive the equilibrium set of strategies.
(iii)
Explain why this is an example of the Prisoners’ Dilemma game.
(b) What
is the Bayesian Nash equilibrium? How is it different from Perfect Bayesian
equilibrium?
6
5. What
is Kaldor’s compensation principle? How is it different from Hick's
compensation principle?
12
6. (a)
“Homothetic production function includes Homogeneous production function as a
special case.” Justify this statement.
6
(b)
Consider a production function: Q = f (L), where Q represents the output and L
is the factor of production. Let w be the per unit price of factor L and p be
the per unit price of output Q. Using the Envelope theorem determine the supply
function and the factor demand function.
6
7. (a)
What are the assumptions on which the First fundamental theorem of welfare
economics rests?
4
(b)
Consider a pure-exchange economy of two individuals (A and B) and two goods (X
and Y). Individual A is endowed with 1 unit of good X and none of good Y, while
individual B with 1 unit of good Y and none of good X. Assuming utility
function of individual A and B to be
UA = (XA) α (YA) 1−α and UB = (XB) β (YB) 1−βe
where Xi
and Yi for i = {A, B} represent individual i’s consumption of good X and Y,
respectively, and α, β are constants such that 0 < α, β < 1. Determine
the Walrasian equilibrium price ratio.
8
MEC 101 Solved Assignment 2021-22, MEC 101 Solved
Assignment 2021-22 , MEC 101 Solved Assignment 2021-22, BTME 14 1 Assignment,
IGNOU Assignment MEC 101 2021-22- Gandhi National Open University had
recently uploaded the assignments of the present session for Programme for the
year 2021-22. MEC 101 Solved Assignment 2021-22 Students are recommended to
download their Assignments from this web page itself. They don’t got to go
anywhere else when everything regarding the Assignments are available during
this article only.
MEC 101 Solved Assignment 2021-22 : All assignments
are in PDF format which would be send on email/WhatsApp (9958676204) just
after payment.
For Students - MEC 101 Solved Assignment 2021-22
Students are advised that after successfully downloading their Assignments,
you'll find each and each course assignments of your downloaded Programme. MEC
101 Solved Assignment 2021-22 Candidates need to create separate assignment for
the IGNOU Master Course, in order that it's easy for Evaluators to see your
assignments.
IGNOU Assignment Status 2021-22
MEC 101 Solved Assignment 2021-22 Those students who
had successfully submitted their Assignments to their allocated study centres
can now check their Assignment Status. MEC 101 Solved Assignment 2021-22
Alongside assignment status, they will also checkout their assignment marks
& result. All this is often available in a web mode. MEC 101 Solved
Assignment 2021-22 after submitting the assignment, you'll check you
IGNOU Assignment Status only after 3-4 weeks. it'd take 40 days to
declare.
MEC 101 Solved Assignment 2021-22 once the TEE
assignments are submitted to the Centres, it's send to the evaluation
department. After which the evaluation of IGNOU Assignment Solutions takes
place.
Related Links :
BTMG 171 Solved Assignment 2021-22
MLIE 104 Solved Assignment 2021-22
BMTC 138 Solved Assignment 2021-22
MLII 103 Solved Assignment 2021-22
MEC 101 Solved Assignment 2021-22 : All assignments
are in PDF format which would be send on email/WhatsApp (9958676204) just
after payment.
MEC 101 Solved Assignment 2021-22 :- Those
students who had successfully submitted their Assignments to their allocated
study centers can now check their Assignment Status. Alongside --assignment
status, they will also checkout their assignment marks & result. All this
is often available in a web mode. After submitting the assignment, you'll check
you MEC 101 Solved Assignment 2021-22 only after 3-4 weeks. MEC 101 Solved
Assignment 2021-22 it'd take 40 days to declare MEC 101 Solved Assignment
2021-22
For IGNOU Solved Assignment PDF & Hand Written
Subscribe YouTube : My IGNOU Solutions
WhatsApp Contact : 9958676204
