Ques 1.

The behaviour of the firm which seems to be efficient in the short-run may found to be inefficient in the long-run. Do you agree? Explain using appropriate diagram.

Ques 2.

Discuss the reasons behind a typical U-shaped long-run average cost curve (LAC) that a firm may face over its range of output in the long run.

Ques 3.

Explain the concept of an Expansion path? Explain why an expansion path in case of a linear homogeneous production function is a straight line? Discuss.

Ques 4.

Illustrate isoquants having positively sloped segments. In the same diagram construct ridge lines and explain the concept of Economic Region of Production.

Ques 5.

Discuss the concept of Utility. How is the cardinal utility approach different from the ordinal utility approach?

Ques 6.

On what grounds is the law of diminishing marginal utility being criticized by the modern economists?

Ques 7.

Illustrate the impact of a price support measure imposed by the government on the market of a commodity under the following conditions:

(i) When the price floor is fixed at a price lower than the equilibrium price.
(ii) When the price floor is fixed at a price equal to the equilibrium price. 

Ques 8.

For equilibrium, a producer may attempt maximization of output subject to a given cost or alternatively, he may seek to minimize cost subject to a given level of output. Do you agree? Discuss.

Ques 9.

Why does the marginal rate of technical substitution (MRTS) decline as we move rightward and downward along a convex-shaped isoquant?

Ques 10.

The concept of consumer’s surplus is derived from the law of diminishing marginal utility. Discuss.

Ques 11.

What is meant by Arbitrage?

Ques 12.

Draw an income consumption curve in case the good marked on the horizontal axis is a necessity good while that marked on the vertical axis is a superior good.

Ques 13.

Who does bear the tax burden when the demand is perfectly elastic and supply is of normal shape?