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Question: 1 What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic?
Question 2. (a) Explain law of demand with the help of a demand schedule and demand curve.
(b) Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
Question 3. "Cost function expresses the relationship between the cost and its determinants." Discuss this statement giving examples from any firm of your choice.
Question 4. "A characteristic of oligopolistic market is that, once the general price level is established it tends to remain fixed for an extended period of time." Discuss the economic rationale underlying this phenomenon.
Question 5. In any firm of your choice, try to find the effect of change in demand and change in supply on price and quantity of product.
Question 6. Write Short Notes on the following:
(a) Value Maximization
(b) Envelope Curve
(c) Peak Load Pricing
How income may change savings behavior
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
What will be the effect of this change in policy on both the real and the nominal interest rate in the long - run?
Exchange and markets, Demand supply and market equilibrium
Describe the Soviet Rapid Development Model
How much does the gross price increase in each market
Problem on standard deviation
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
Overview of the project's objectives and scope
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
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