How price and output are determined under monopolistic market in the long run?
What is indifference curve explain its properties.
Explain the relationship between AR and MR under imperfect competition.
Define central bank. What are its functions? Explain.
Explain the types of microeconomics with suitable diagrams.
The demand function of a commodity is given as Q = 200 − 30P. Price of the commodity is Rs. 4 per unit. Compute the price elasticity of demand. If the objective is to increase total revenue, should the price be increased or decreased? Why?
Write short notes (any two)
a. Demand-pull inflation.
b. Balance of payment
c. Price consumption curve
Attempt any TWO questions
[2x10=20]What is cartel? Explain pricing under cartel (aiming at joint profit maximization).
Explain circular flow of income and expenditure in four sector economy.
Calculate TVC, TC, AFC, AC and MC from the following table. TFC= Rs. 100
| Q | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| AVC | 10 | 12 | 15 | 17 | 19 | 23 | 30 | 50 |