Section A
Q1. Answer all the following seven parts.
(a) The demand and supply functions are Pd = (6 - x)^2 and Ps = 14 + x respectively. Find the consumer surplus under pure competitive market.
(b) Distinguish between Economies and Diseconomies of scope. How can the degree of Economies of scope be determined?
(c) How is the inter-temporal pricing a form of price discrimination ? Give example.
(d) For a monopsonist, what is the relationship between the supply of an input and the marginal expenditure on it?
(e) Explain divergence between private and social costs and mislocation of resources in a perfectly competitive system.
(f) Describe the methods used in isolating secular trend in a time series.
(g) Distinguish between pure strategies and mixed strategies of a game.
