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MS-9 December, 2015

Term-End Examination

December, 2015
Time : 3 hours Maximum Marks : 100
Note : (i) There are two Sections : Section-A and Section-B.
(ii) Attempt three questions from Section-A carrying 20 marks each.
(iii) Section-B is compulsory and carries 40 marks.


1. Explain the equi-marginal principle. Elucidate with the help of examples.
2. Discuss any five variables, which can be included in the demand function and can have a major impact on the demand.
3. Explain the production function with two variable inputs i.e. production isoquants giving examples.
4. What is Oligopoly ? Explain the important characteristics of Oligopoly.
5. Write short notes on the following :
(a) Bundling
(b) Cartels.

6. Assume a firm has the following total revenue and total cost functions :
TR =320Q — 2Q2
TC =1800 +50Q + 3Q2
Determine :
(a) The level of output at which the firm will be maximizing profits ;
 (b) The level of output at which total revenue will be maximum.
7. (a) Explain why a firm facing a downward sloping demand curve would never produce the inelastic (ep < 1) portion of the demand curve.
    (b) When would the firm operate at the point where demand curve is unitary elastic ?

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