ECO402 Microeconomics Final paper 28 February 2013

Long questions for ECO402 52 MCQs

Rent seeking? Different ways of rent seeking?
Price ceiling usually result in a deadweight loss,why?
Why does price leadership sometimes evolve in oligopolistic markets? Explain how the price leader determines a profit-maximizing price.
Explain the basic difference between the terms ‘monopoly’ and ‘monopsony’.
Give some examples of third-degree price discrimination.
What are the characteristics of a competitive factor market?

Another Paper:


                                           3 Marks

1. What conditions are necessary for successful cartelization?

2. Explain the concept of intertemporal price discrimination with the help of example?

3. Write down formulas of Lerner’s index of monopoly power and the rule of thumb for pricing?

                                          5 Marks

  1. What do the Cournot and Bertrand modles have in common? What is different about two modles?
  2. Explain the welfare loss with the help of diagram when price is held below market =clearing price?
  3. A > Difference b/w matching and non matching grants

B > What are the conditions that the maximizing market basket must satisfy?

4.  Monopoly power used to compare one firm with another. How can we measure  it?

5. Suppose a firm price can practice perfect first degree price discrimination. What is the lowest price it will charge and what will be its total output?

Another Paper:

Total question 60

MCqs 52

1. what is meant by non proce competition why do monopolistics competitors  engage in it whilr perfectly competitors firms do not?


2. what are the basic characteristics of monopolistically competitive market?  what would happen to equilibrium price & quality in such a market if one  firm launches a new and improved product?


3.Determine the rules of tumb price when the monopolists has a marginal cost  of Rs. 25 and the price of elasticity of demand -3.0?


4.it has been said that in case of snob effect market demand is more elastic  prove this with example.


5. why does price leadership some times evolve in ologopolistic market?  expalin how the price leader determines or profit maximizing price?