ECO401 Current Mid Term Papers 16 May 2011

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Define marginal rate of substitution

Explain price discrimination

Describe tow main theories of production regarding time.

verify the diagram with short run monoplistic copmetition:
Reference: Lesson #21


Paper = 2

1. Equation of total revenue (TR) is given below
TR = 100Q – Q2
If Q =3 than calculate average revenue and slope of average revenue.
2. Explain the traditional theory of firm with the help of its basic equation.
3. Give the degree of discrimination of the following
a. an electric power supply company uses block prices for electric sales.
b. An airline company charges different ticket rates to passengers
c. Tennis court owner charges different from child and young ones
d. Producers sells commodity abroad at lower price and higher price in local market
e. Doctor charges high prices to rich than poor.
4. What would be the shape of indifference curve in each of the following?
a. A, B are two brands of the same product, consumer can not tell the difference whether which is good
or preferred.
b. X is good and Y is bad like household refuses.

[Vuhelper]

total 32 questions

mcqs are 28
two short questions of 3 marks
two long questions of 5 marks



draw an inderence curve (5)
a)for complimetary good like left shoes and right shoes.
b)for perfect substitues like coca cola and pepsi.

identify the five situations in which costel can survive(5)

what would indifference curves like in each of the following case?(3)
a)x and y are two brands of same products, and consumer cannot tell them apart.
b)x is good and y is bad - like household refuse.

[Vuhelper]

total 32 questions

mcqs are 28
two short questions of 3 marks
two long questions of 5 marks



draw an inderence curve (5)
a)for complimetary good like left shoes and right shoes.
b)for perfect substitues like coca cola and pepsi.

identify the five situations in which costel can survive(5)

what would indifference curves like in each of the following case?(3)
a)x and y are two brands of same products, and consumer cannot tell them apart.
b)x is good and y is bad - like household refuse.

[Vuhelper]

38 mcqs mostly in the past papers
Short question :
♠Differentiate between external economies of scale and external diseconomies of scale with the help of examples?
♠Determine the Marginal revenue curve OrMarginal cost curve?
♠What is monopoly?
♠ Define ppf?Also draw graph with example to explain it?