Microeconomics for Business (MGT 207)

Tribhuvan University · Microeconomics for Business (BBS 1st Year) · 2083 BS — 19 questions — a free old question paper on Goodone.club’s exam-paper archive.

  1. Write any four scopes business economics. [2 marks]
  2. Draw the production possibility curve. [2 marks]
  3. What is consumer surplus? [2 marks]
  4. Define the marginal rate of substitution. [2 marks]
  5. State the Cobb-Douglas production. [2 marks]
  6. Differentiate between explicit cost and implicit cost. [2 marks]
  7. Write any four features of perfect competition market. [2 marks]
  8. What is the meaning of rent? [2 marks]
  9. Calculate the degree of economies of scope when total cost of production of goods A and B separately are C_A = Rs. 50000, C_B = Rs. 60000 respectively but total cost for producing both A and B is C_(A+B) = Rs.100000 while producing jointly. [2 marks]
  10. State the areas of uses of the price elasticity of demand. [2 marks]
  11. Differentiate between micro static and comparative micro static analysis. [10 marks]
  12. Explain the types of price elasticity of supply. [10 marks]
  13. Explain the consumer's equilibrium in indifference curve analysis approach. [10 marks]
  14. How does a monopoly firm determine price in short run? Explain. [10 marks]
  15. Consider the following two production preference schedules of a producer: Schedule 1 (Combination | K | L | Output): A1 10 60 1000; B1 20 25 1000; C1 30 10 1000; D1 40 5 1000. Schedule 2 (Combinations | K | L | Output): A2 10 75 1500; B2 20 40 1500; C2 30 25 1500; D2 40 15 1500. a. Compute total cost for each combination of capital and labor if price of use of capital is Rs.10, price of labor is Rs.5 and the producer has total cost outlay Rs.400 and identify the least cost combination. b. Sketch the isoquants IQ1 and IQ2 by using schedule 1 and schedule 2 respectively and sketch the isocost li... [10 marks]
  16. Complete the following table and explain the relation between average cost and marginal cost. (6+4) (Output | TFC | TC | TVC | AVC | AC | MC): 0, 24, 24, -, -, -, -; 1, -, 30; 2, -, 32; 3, -, 36; 4, -, 48; 5, -, 74; 6, -, 120. [10 marks]
  17. Complete the following schedule if the market demand function is D=1000-10P and the market supply function is S=100+20P. (4+3+4+4) Table (Price | Market demand | Market supply | Shortage/Surplus | Pressure in price): 10; 20; 30; 40; 50. a. Plot the market demand curve and the market supply curve in a figure. Show the equilibrium price and quantity both in schedule and figure. b. Calculate price elasticity of demand (i) when price increases from 10 to 20 and, (ii) when price decreases from 20 to 10. c. Calculate price elasticity of supply (i) when price increases from 10 to 20 and, (ii) when pr... [15 marks]
  18. Critically analyze the Marginal Productivity Theory of Wages. [15 marks]
  19. How do the tax policy, subsidy policy and price control policy of the government affect the market equilibrium? [15 marks]