BECC 105
INTERMEDIATE MICROECONOMICS-I
IGNOU BECC 105 Free Solved Assignment 2024
IGNOU BECC 105 Free Solved Assignment July 2024 & Jan 2025
Assignment 1
Q 1. (a) Decompose the Price Effect into Slutsky Substitution and Income effect for an inferior commodity. Use diagram to show the same.
(b) Differentiate between Risk aversion and Risk neutrality. How does insurance help in reducing risk? Show with an example.
Q 2. (a) What is an Isoquant? Explain the properties of an Isoquant. How do you define the economic region of production? Explain using diagram.
(b) Consider a market for good X represented by the following demand function, q = 125– 20 P. Now assume the market price of this good to be Rs. 5, calculate
a) The initial consumer’s surplus at market price of Rs. 5.
b) The change in consumer’s surplus when price falls to Re 1.
c) The gain due to fall in price to the consumers who could buy at old price of Rs. 5 (that
is, the gain to the old buyers); also the gain to the new buyers of good X at lower price of Re 1.
Assignment 2
Q 3. Consider the following Cobb-Douglas utility function
U(x1, x2)= x12x22
P1= 10, P2= 5
Where x1 and x2 are the two goods and P1 and P2 are their respective prices.
(i) Determine the optimal choice of consumption of x1 and x2
(ii) Find the expression for Indirect Utility Function
Q 4. What is meant by “Cost Minimisation”? Explain how a rational producer maximizes his profits using Isoquant and Isocost line.
Q 5. State and explain the two fundamental theorems of welfare economics.
Assignment 3
Q 6. List the three important properties about preferences. When are preferences said to be “wellbehaved”? IGNOU BECC 105 Free Solved Assignment 2024
Q 7. If production function is given by Q =10 √
(i) Calculate the elasticity of output with respect to labor (L)
(ii) Calculate the elasticity of output with respect to capital (K)
(iii) What kind of returns to scale does it exhibit?
Q 8. What are the two approaches to profit maximization under perfect competition? If TR= 400Q -2Q2, TC= 1800 +50Q + 3Q2. Find the profit maximizing level of output for the firm.
Q 9. What is a Walrasian equilibrium? Explain how a “non-competitive equilibrium is inefficient”.
Q 10. Write short note on any three
(i) Compensating Variation
(ii) Certainty Equivalent
(iii) Labor- deepening Technical Progress
(iv) CES production function
For Answer You Can 👇/ उत्तर के लिए आप व्हाट्सएप कर सकते हैं👇
BECC 104 Free Solved Assignment July 2024 & Jan 2025