Master of Commerce (M.Com.) Part I SEM II 2017 2018 May 2018 I ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q1 a) Explain the paradox of bumper harvest
   • b) Explain snob appeal and band wagon Discuss consumer’s equilibrium with the help of indifference curve
   • d) Illustrate the substitution effect with the-help of a
2. Q2 a) The firm can maximize the profits by employing the factors in optimal combination at which cost of production is minimum-explain, 8 marks
   • b) Write an explanatory note on learning curve. 7
   • c) Bring out the relationship between AFC, and MC with the help of a diagram 8
   • d) Discuss different types of returns to scale with the help of.the diagram. 7
3. Q3 a) Explain profit maxmisation of a discriminating monopolist. 8 marks
   • b) Discuss the concept of price leadership under cligopoly market. 7 Discuss how game theory is uséd to analyse strategic decisions. 8
   • d) Read the paragraph and answers the given questions : of Tourism, Government of India classifies hotels into seven categories: five Star deluxe, five star, four star, three star, two Star, One star and heritage hotels. These apart, there are hotels in the unorganized sector that have.a significant presence across the country and cater primarity.to economy tourists face of stiff competition, hotels in India have come up with ingeneous ways to attract These hotels distinguish with beds, bathroom, amenities and complementary ‘Some offer others offer formal menus of a variety of food styles, Chinese, Entry into restaurant business is easy. Each offers a differentiated product, advertises location and.menu AD Identify structure and describe its characteristic features Comment offered by hotels in India Choose the right option from the following:- 7
   • i.) Economic growth is depicted by
   • a) ashift in production possibilities frontier outwards
   • b) amovement from inside, towards the curve
   • c) ashift in the production possibilities frontier inward
   • ii.) Slope of the consumers budget constraint is 3
   • a) given by the ratio of price of two goods
   • c) given by the ratio of two goods
   • d) positive iu.) case of inputs being substitutes, elasticity of-substitution ot such production” function equal to
   • a) zero
   • b) one
   • d) infinity
   • iv.) Ifa production function exhibits:diminishing marginal product, its slope 6
   • a) Is linear
   • b) becomes steeper
   • c) becomes flatter
   • d) none of the Which of the following is a variable cost in the short run?
   • a) on the factory
   • b) wages paid to laborers
   • d) salaries paid to upper management
   • vi.) Celebrity brand endorsement in an oligopolistic market is an example of
   • b) indifference of buyers among products
   • vii.) In the monopolist would always
   • a) incur losses =
   • c) - lower its prices Give precise meaning of the following:
   • a) Veblen effect
   • b) principle
   • c) Expansion path
   • Q.P. Code : 05149
4. Q4 Write short notes three of the following. 1S
   • a) Twin principles of,scarcity and efficiency
   • b) Opportunity cost
   • c) Market failure
   • d) Cartels,
   • e) dilemma

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