Time: 3 Hours Maximum Marks: 100 Note: Answer Questions From Each Section As Directed
Time: 3 Hours Maximum Marks: 100 Note: Answer Questions From Each Section As Directed
Time: 3 Hours Maximum Marks: 100 Note: Answer Questions From Each Section As Directed
SECTION I
ED2 = 3 P2 + 2 P3 =1,
P1 P1
4P2 2 p3
ED = =2.
P1 P1
(a) Show that these functions are homogeneous
of degree zero in pi, P2 and N.
(b) Use Walras law to show that if
ED2 = ED3 = 0, then ED1 must be zero.
MEC-001 1 P.T.O.
2. Consider an industry with two firms. Each firm
has constant marginal cost C'(q) = 0. Let the
market inverse demand function be
P(Q) = 100 — Q, where Q = qi + q2.
MEC-001 3 P.T.O.
7. A household lives for two periods, 0 and 1. It
begins its life with zero financial wealth, earns
Y0 = 100 in period 0 and income Y1 = 100 in
(1
period 1. If the interest rate is given to be – % ,
and the utility function of the household is
U(CO3 C1) = U(C0) + 0.75 U(C1), find the
consumption in period zero.
MEC-001 4
9. (a) Find all the Nash equilibria and
corresponding payoff of the following
game :
Player-Rosa
F B
B 80, 20 50, 50
(b) There are two players P-1 and P-2. P-2 could
be either type T or type P. The payoff
matrices accordingly are
P-2, Type-T P-2, Type-P
X Y C D
P-1 X 0, 0 0, 1 P-1 C 4,4 0,5
Y 0, 0 4, 1 D 5, 0 2, 2
MEC-001 5 P.T.O.
11. Write short notes on the following :
(a) Total Consumer's and Producer's Surplus
(b) Williamson's alternative theory of firm
(c) Shephard's lemma
(d) First Welfare Theorem
MEC-001 6
kig.t.141.-001
(anhrrn:R)
TrAtatiftUr
x, 2014
qui
'TT+T I
siPT *-ef iow * 3W ef47- 2 x 20=40
MEC-001 7 P.T.O.
2. 3T:41T 4 t -EA t 7Ac* - wr 31-4T T11-4as
MNId 1F-
Mq C'(q) = 0 t I "(TT i clIAlk
Tarr P(Q) = 100 — Qt, `316 Q=q1+ C12.
() .-rat Z :Err 11111?
eirc trOt rb4 3tiT TErft 34- Trrift t,
Tig--eqs 4
*-fm. A'IN7
3.7-
3. tIc^ 1 gRi #ruff *t IT( 111W-A-R
err 31-rcr flzrzia. ATRet sf-4-za*
* oeicwRq.) HHa ? k*f1*1.-1)
31-03tlt *1:14T 4 ici) tf47
6. ITF #tr-
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MPL = 400 — 0.5L t 3T1K WI. At 3764
L = 50 + W, W qikl -g:40tUri t I
(*) NIAlt kigo-144 .AR-cract) Tr74-0 'Wf 3-7*—0-4
*CrAR I
"Mq #tr77"f" k.Rchik 40 01117
I RI .q^EIT \711111 ?
(TO 47
#11
- TrAV 75 ciI11,- "K
I ur.931 1,11 ?
MEC-001 9 P.T.O.
7. tatd-R t 3TeT411 373-1-17 enkil tact t,
() 4 -grAT *
ti(9041 ;Err ?
A7f*7r-g3***r -Na-zrt
ITRW-
)- tl6l atR 7r-g*r aftr*-dTr •a-raT 3c41q.1
Tiz474 EtT ?
MEC-001 10
. () H4-1 ci (go 1 (to) Rift AT WaR
NICNIR-1 trN7 :
Ramt-t :41
F B
B 80, 20 50, 50
MEC-001 12 6,000