BECC 108
INTERMEDIATE MICROECONOMICS – II
IGNOU BECC 108 Free Solved Assignment 2024
IGNOU BECC 108 Free Solved Assignment July 2024 & Jan 2025
Assignment One
Q 1. (a) Explain how the presence of externalities in the market does not lead to optimal production of goods? Suggest at least three ways of internalizing the externalities.
(b) Consider a duopoly of firm 1 and 2 producing a homogenous product, the demand of which is described by the following demand function: Q = (100 – P) where Q is total production of both firms (i.e., Q = Q1 +Q2, Q1 and Q2 are the output produced by firm 1 and firm 2,respectively). Let the marginal cost of production faced by both firms be Rs. 50, i.e. MC1= MC2 = 50. Calculate the residual demand function for both the firms. Find their reaction curves and the Cournot-Nash equilibrium quantity produced by each firm?
Q 2. (a) What is Pareto Efficiency? Explain the statement that Pareto efficiency requires Efficiency in exchange, production and output mix.
(b) Distinguish between the Sequential- move game and Simultaneous-move games.
(c) Explain Subgame perfect Nash Equilibrium. Find the same in the following game
Assignment Two
Q 3. What are Public Goods? How is the optimal provision of public goods done in the society? IGNOU BECC 108 Free Solved Assignment 2024
Q 4. What is Deadweight loss for a monopolist? If a monopolist faces the demand curve given by P(Q) = 20-2Q and the cost function as 2Q+ Q2, calculate the deadweight loss that he might face.
Q 5. What is a Contract curve? Explain how any perfectly competitive equilibrium allocation is Pareto efficient.
Assignment Three
Q 6. What are Iso-welfare curves? How do they help in determining the maximum point of social welfare?
Q 7. Differentiate between Bergson-Samuelson Social Welfare Function and Classical Utilitarian or Benthamite Welfare Function
Q 8. Natural Monopoly cannot have Marginal cost Pricing. Explain why?
Q 9. Explain the concept of excess capacity under Monopolistic Competition.
Q 10. Differentiate between any three:
(a) Long run equilibrium of Monopoly and Perfect competition
(b) Bertrand and Stackelberg model IGNOU BECC 108 Free Solved Assignment 2024
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BECC 107 Free Solved Assignment July 2024 & Jan 2025