BECC 108 ASSIGNMENT DECEMBER 2022 FULL SOLVED. INTRODUCTORY MICROECONOMICS II ASSIGNMENT SOLUTION.

IGNOU BECC 108 ASSIGNMENT SOLUTION FOR BAECH ( ECONOMICS HONOURS) BY SHAMI IBRAHIM. WATCH MY OTHERS VIDEOS RELATED TO THE SAME COURSE AS WELL. N OFCOURSE PLZ LIKE AND SUBSCRIBE. SHARE THE VIDEO WITH YOUR FRIENDS. 1. (a) Elucidate price and output determination under any two non-collusive models of Oligopoly. (10) (b) Consider a market structure comprising two identical firms (A and B), each with the cost function given by Ci = 30Qi , where Qi fori = {A, B} is output produced by each firm. Market demand is given by P = 210 − 1.5Q, where Q = QA + QB (i) Find Cournot equilibrium. (5) (ii) What will be the outcome if the firms decide to collude? Compare it with the results under the Cournot equilibrium. (5) Q Player 2 2. (a) How would you differentiate a Static game from a Dynamic game? (b)What is meant by a Subgame Perfect Nash equilibrium? (c)Consider the following game. (2, 2) U(1, 5) T U(−1,3) (3, 2) T(0, 1) (6) (6) S Player 1 R Player 2 P Player 1 (i) Can Backward induction be applied in this game to find a solution? Why or why not? (4) (ii) What will be the Subgame Perfect Nash equilibria for the given game? (4)Assignment Two Answer the following questions. Each question carries 10 marks. 3 × 10 = 30 3. Consider an Edgeworth box that describes a two-person, two-commodity exchange scenario. Explain how trade takes place between the two individuals starting from the initial endowment position. What is the significance of the slope of the ray passing through a Pareto optimal point and the endowment point? (10) 4. Discuss the situation when the price mechanism fails to allocate resources efficiently. What could be possible ways to correct such a failure? (10) 5. A monopolist operates under two plants, 1 and 2. The marginal costs of the two plants are given by MC1 = 20 + 2Q1 and MC2 = 10 + 5Q2 where Q1 and Q2 represent units of output produced by plant 1 and 2 respectively. If the price of this product is given by 20 – 3(Q1 + Q2), how much should the firm plan to produce in each plant, and at what price should it plan to sell the product? (10) Assignment Three Answer the following questions. Each question carries 6 marks. 5 × 6 = 30 6. What is the role of price elasticity of demand in applying the third-degree price discrimination? 7. Differentiate between Signalling and Screening as solutions to problem of asymmetric information. 8. Compare and contrast the Benthamite welfare function with the Rawlsian welfare function. 9. Discuss the concept of Excess capacity associated with the monopolistic competition. 10. A game may have multiple Nash equilibria or none at all.Do you agree? Give reason.