ISI 2017 PEB

[Diya]

How to do 27th?

[Halflife]

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[Econenthusiast]

You're right its not a Pareto improvement but I'm wondering if its a gain from the point of social efficiency, because overall surplus has increased. And its behen, not bhai :)

[Halflife]

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[Halflife]

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[sneha]

@halflife how are you getting 18 in Q 21 as ans?

I did the following way
S(P)=p/3=MC

MC=q=3.....so the total variable cost is 3q=9

[Halflife]

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[Halflife]

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[Halflife]

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[Halflife]

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[sneha]

its the supply curve of a firm which is equal to MC. S(P) is the quantity supplied by the firm which is q=3

[Diya]

My method was:

P=2Q=MC
Integrating: Q^2=TVC
As Q=3, 3^2=9.

What am I missing here?

[sneha]

Even I'm getting B as the answer for the same rationale as yours.

[Halflife]

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[Halflife]

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[Halflife]

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[sneha]

for Q-14

[Diya]

q.AVC=TVC, unless MC=AVC, we can't say q.MC=TVC. Or may be my basic is failing me here:/
YES KEY IS REQUIRED FOR BOTH PEA AND PEB!!


For 24th, As the monopolist is operating in the elastic part in market 1, and inelastic in market 2, raising p2 will definitely raise profits. I didn't calculate here as it seemed pretty obvious :/

[Halflife]

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[Halflife]

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