microeconomics for business Old Question Papers (2082, 2081) – BBS Year 1

microeconomics for business old question papers

Pick a year on the left to see the full paper, exactly as it was set.

19 questions · 19 with worked answersSit this paper (timed)

Tribhuvan University

Bachelor of Business Studies

Year 1 · TU Board 2082

Course Title: microeconomics for business

Full Marks: 100Pass Marks: 35Time: 3 hrs

Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.

Group A

Brief Answer Questions(10 × 2 = 20)

1.
Draw a production possibility curve and show the efficient and inefficient combinations of production of an economy on the curve?

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2
2.
State the factors causing leftward shift of supply curve of an apple farm.

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2
3.
Define advertisement elasticity of demand.

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2
4.
Why do indifference curves not intersect each other?

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2
5.
Derive isocost line when total cost outlay is Rs.4000, wage rate is Rs.200 and rental rate of capital is Rs.400.

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2
6.
Write the formula for calculation of marginal product of labor ( $M P_{L}$ ) and average product of labor ( $A P_{L}$ ).

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2
7.
Write the conditions for equilibrium of a firm in monopolistic market in short run.

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2
8.
Give examples of demand-increasing innovations in Innovation Theory of Profit.

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2
9.
A firm’s average revenue is Rs.200, average cost is Rs.220 and average variable cost is Rs.175. The firm, suffering from loss, should shut down or stay in business in short run.

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2
10.
Make a list of internal diseconomies of scale.

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2

Descriptive Answer Questions(5 × 10 = 50)

11.
Differentiate between static and dynamic analysis in microeconomics.

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10
12.
Describe the market efficiency? How is market efficiency measured by consumer surplus and producer surplus? [4+6]

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10
13.
Explain the degrees of elasticity of supply.

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10
14.
Explain the consumer's equilibrium in cardinal approach. Price apple is Rs.20, price of banana is Rs. 10 and the consumer spends whole income Rs.110 on apple and banana. Find the consumer's equilibrium when the marginal utilities (MU) of apple and banana are as follows: Explain consumer equilibrium in cardinal utility analysis. The price of an apple is Rs. 20, the price of a banana is Rs. 10 and the consumer spends his entire income of Rs. 110 on apples and bananas. Find the consumer's equilibrium in the situation where the marginal utilities of apples and bananas are as follows:

Units of consumption 1 2 3 4 5 6 7

MU of apple 800 700 600 500 400 300 200

MU of banana 500 450 400 350 300 250 200

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10
15.
Why do some long run average cost curves are U-shaped but some are L-shaped? Differentiate with the reasons.

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5
16.
Complete the following table. Graph total revenue, average revenue and marginal revenue curves. Explain the relation of total revenue and marginal revenue with price elasticity of demand. (2+3+5)

Quantity 0 10 20 30 40 50 60 70

Total revenue 0 60 100 120 120 100 60 0

Average revenue

marginal revenue

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10

Units of consumption	1	2	3	4	5	6	7
MU of apple	800	700	600	500	400	300	200
MU of banana	500	450	400	350	300	250	200

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