BECM-161 EM 2025 SOLVED ASSIGNMENT

Description

BECM-161 : PRINCIPLES OF MICROECONOMICS
Tutor Marked Assignments
Course Code: BECM-161
Assignment Code: BECM-161/2025
Total Marks: 100
Section A
Answer the following Descriptive Category questions in about 500 words each. Each question
carries 20 marks
2
1
2
(a) Using Isoquant and Isocost line, explain the optimum combinations of factors and
Producer’s equilibrium.
(b) What is the relationship between long run Marginal cost and Long run Average
cost curve? Explain the concept of long period Economic Efficiency using a diagram.
(a) Explain using diagram the shut down point and break even point for a perfectly
competitive firm.
(b) The price determination under Monopoly is different from Perfect Competition.
Explain how.
Section B
Answer the following Middle Category questions in about 250 words each. Each question carries 10
marks.
3
3
4
(a) Derive the demand curve from Indifference Curve for an inferior good.
(b) Explain the total Expenditure method of calculating the price elasticity of demand.
(a) “Economies of Scale lead to increasing returns in the long run”, in the light of this
statement, discuss the internal and external economies of scale accruing to the firm in
the long run.
5

(b) If the government fixes the price above the equilibrium price, what impact will it
have on the market?
5
(a) A consumer consumes only two goods – X and Y. State and explain the
conditions of consumer equilibrium under utility analysis.
(b) Give reasons for diminishing returns to a factor in the short run.
Section C
Answer the following Short Category questions in about 100 words each. Each question carries 6
marks.
6 Distinguish between extension of supply and an increase in supply.
7 What is Market Failure? Under what conditions can the market fail?
5 × 6 = 30
8 What happens to the budget line when the income of the consumer increases. Use
diagram to show.
9 Discuss with example the concept and features of Monopolistic Competition.
10
Law of Diminishing returns applies only in the short-run. Do you agree?