University of Punjab PU Lahore M.A / M.SC. Economics Part 1 Past Paper of Micro Economics Annual Examination 2010
1. a) Suppose the price of Inferior Commodity decreases, what will be the effect on Mr. Haroon’s equilibrium position. Explain with the help of diagram.
b) A consumer is in equilibrium at that point, where budge line is tangent to the highest possible indifference curve. Explain both diagrammatically and mathematically?
2. a) How does monopolistic Competition differ from Pure Competition in its basic characteristics?
b) Find out Consumer’s equilibrium position related to X and Y commodities when Utility Functions of both commodities and other information is given as below
UX = 40X – X2
UY – 20Y – 2Y2
PX = 4, PY = 2 and M = 24 (Budget)
3. a) Explain the concept of Marginal Rate of Technical Substitution, and how it is derived mathematically?
b) Explain Cournot Model of Duopoly with the help of reaction curves.
4. a) How long Period Average cost and Marginal cost curves are derived with the help of short Period cost curves?
b) Explain he concept of Bilateral Monopoly with the help of diagram.
5. Elucidate the salient features of Cobb-Douglas Production Function.
6. How we can derive Demand curve for labour by a monopolist Firm, when firm is employing a single variable factor both diagrammatically and mathematically?
7. Explain any two of the following:
(a) Expansion Path
(b) Nash Equilibrium
(c) Perfect Competition and Pareto optimality