BBM 1st Semester
Micro Economics for Business Board Question Paper 2022

What is the effect of printing too much money in economy?

What is the effect of rightward shift in supply curve in equilibrium price and quantity?

Differentiate between single variable demand function and multivariable demand function.

If price elasticity of demand be( = ) 1.5 and AR is 300, calculate marginal revenue.

Name the economic tools that can be used to measure economic efficiency.

Calculate total fixed cost and total variable cost at output (Q) = 10 in total cost function C = 200 + 10Q +3Q²

Draw the long run average cost and marginal cost curves.

Give four examples of oligopoly market in Nepal

Why does the demand curve of monopoly market slope downward?

What is economic rent?

Explain the scope of microeconomics.

Demand function of cigarette is Qd = 350000 – 5000P and supply function of the cigarette is Qs=50000 + 1500P. Find the equilibrium price and quantity of the cigarette. If government imposes tax Rs 10 per cigarette, find the equilibrium price and quantity of the cigarette and compute the results.

Anisha has total amount of money Rs. 500 and wants to buy internet data and pencils. Find the equilibrium quantity of the data and pencils if price of internet data is Rs. 200 per GB and price per pencil is Rs. 20 and marginal utility schedule of both goods is:

Describe the law of increasing returns to scale.

Explain any four features of perfect competition market.

Describe the industrial union model in wage rate determination.

Differentiate between business profit and economic profit with numerical illustration.

What is price elasticity of demand? Explain its uses in business decision making.

What is indifference curve? How does a consumer get equilibrium in indifference curve approach?

Production function of a ABC shoes factory is Q = 100K^0.3L^0.5, w = Rs 80, r = Rs 100, P=Rs 10 where w is wage rate of labor, r is rental rate of capital and P is price of per pair shoes.
a. Determine optimal employment of two variable inputs under given production quota 4472 units.
b. What will be the change in optimal employment of two inputs when production quota increases to 8904 units.

Complete the following table and answer the following questions.

Read the following case carefully and answer the questions that follow:
Average cost of solar energy has been decreasing continuously for past decades in the world market. Comparing the cost of electricity from new power plants in 2009 and 2019, the cost of solar electricity (from photovoltaic module) fell from Rs 44,875 per megawatt hour to Rs 5,000 per megawatt hour.
The cost reduction is possible because larger, more efficient factories are producing the modules, technological advances increase the efficiency of the panels, engineering advances improve the production processes of the silicon ingots and wafers; the mining and processing of the raw materials extends in scale and becomes cheaper, operational experience accumulates by 'learning by doing'; the modules are more durable and live longer; market competition ensures that profits are low and capital costs for the production decline. Once solar hit scale, it started having its own supply chain and the module itself got a lot cheaper and with that scale there was more research and development. In 2010, fewer than 50,000 megawatts of solar installed but in 2019 with more than 500,000 megawatts installed.
In contrast to this steady decline in renewable energy generation costs, prices of natural gas and coal have sharply increased. The fossil fuel sector is becoming more volatile and riskier. For coal, gas, and nuclear reactors, the cost increases are primarily due to the current cost of fuel fuel, and the plant's operating costs. Renewables like wind and solar don't need to pay for fuel. They need only to build the generating plants. Maintaining the cost. All power plants that rely on nonrenewable sources of energy will have the continued expense, even if the technology to build the plants improves.
Solar energy in Nepal is abundant and cheap. the solar potential in Nepal is 50,000 megawatt-hours per year, which is 100 times larger than the hydro resources. The cost of solar electricity in Nepal is NRs 5,000 per megawatt hour. Once the solar industry becomes mature it will be just NRs 2,000 per megawatt hour from now NRs 6,000.
In the future, the Nepali people can expect to achieve a much higher living standard. When Nepal catches up with neighbouring countries, each person will consume about 15 megawatt-hours per person per year of electricity, which is 70 times larger than today. Clean solar electricity can be used in lightening the darkness, lighting homes, cooking, cooking food, charging electric vehicles, driving industry, computing, using telecommunications, pumping water, grinding grain and refrigerating.
Questions:
a. Draw long run average cost curve of solar electricity and nonrenewable sources of energy.
b. What types of economies of scale does the solar electricity enjoy during the decades?
c. Describe the factors determining the supply of solar energy.
d. Describe the factors determining the demand for solar electricity in Nepal.