# BECC-131 PRINCIPLES OF MICROECONOMICS – I in English Solved Assignment 2021-2022

Contents

## Solved Assignment 2021-2022

Tutor Marked Assignments
Course Code: BECC-131
Assignment Code: Asst /TMA /2021
Total Marks: 100

Title Name

#### BECC-131 Economics Hons (BAECH) Solved Assignment 2021-2022

University IGNOU
Service Type Solved Assignment (Soft copy/PDF)
Course BAG(Economics Hons (BAECH))
Language ENGLISH
Semester 2021-2022 Course: BA(Economics Hons (BAECH))
Session July 2021- January 2022 sessions
Short Name BECC-131 (Economics Hons (BAECH))
Assignment Code Asst /TMA /2021
Product Assignment of BAG(Economics Hons (BAECH)) 2021-2022 (IGNOU)
Submission Date For students of July cycle: 30 April
For students of January cycle: 31 October

Answer the following Descriptive Category questions in about 500 words each. Each question
carries 20 marks
2 × 20 = 40
1. (a) Explain the concept of short-run and the long-run as associated with a firm. 4
(b) Illustrate the relation between Marginal Cost (MC), Average Total Cost (ATC), Average
Variable Cost (AVC) and Average Fixed Cost (AFC) curves. Given a total cost function,
TC(Q) = 50Q2 + 10Q + 75
where Q represents quantity of output produced. Find the expression for Variable Cost (VC),
Fixed Cost (FC), AVC, AFC and ATC. 8
(c) Describe with the help of a diagram interaction between the Short-run Average Total Cost
curves and the Long-run Average Total Cost curve given that the firm has five plant sizes to
consider viz. I, II, III, IV and V (in ascending order of their size), wherein plant size III turn
out to be optimal plant size in the long run. 8
2. Illustrate with the help of a diagram, lower the price elasticity of demand, lower will be the per
unit tax burden borne by the producers. 8
(a) In the Demand-Supply analysis, what is meant by a Marshallian cross? Illustrate 4
(b) The demand and supply functions of a good are given by QD = 110 − 5P; QS = 6P where P,
QD and QS denote price, quantity demanded and quantity supplied, respectively. Find the
inverse demand and supply functions and the market equilibrium price and quantity. 8
Assignment Two
Answer the following Middle Category questions in about 250 words each. Each question carries
10 marks.
3 × 10 = 30
3. What is meant by a firm’s expansion path? Illustrate and distinguish between the Expansion path
in case of a non-linear production function and a linear homogeneous production function.
4. (a) Cardinal Utility analysis is not free from criticism. Do you agree? Elaborate. 5
(b) Consider a consumer who consumes two goods X and Y, priced at PX and PY, respectively.
Suppose price of good X falls to PX’. Decompose price effect of this fall in price into
substitution and income effect using Hicksian approach. 5
5. A rent ceiling prohibits charging rent that exceeds the ceiling amount. Suppose government
decides to put a rent ceiling.
(a) With the help of a diagram show the effect of a rent ceiling on the supply and demand of a
rented house if the ceiling is set below the market equilibrium rent. 5
(b) What will be the resultant effects on supply and demand of a rented house if the ceiling is set
above the market equilibrium rent? 5
Assignment Three
Answer the following Short Category questions in about 100 words each. Each question carries 6
marks.
5 × 6 = 30
6. Given that the two factors of production are used in fixed proportion in the production process,
what will be the shape of the corresponding isoquants? Illustrate. Also, is it possible to increase
the output by increasing only one factor keeping constant the other factor of production? Give