ISI ME II 2014

[aman]

Let's discuss about the solutions of isi 2014 eco part..

[neha 1]

ques 5 (b) part
pls explain

[Spiti]

@neha 1  did you solve 5(a). I'm getting q1=q2=3 and p=4 at cournot equilibrium.

[neha 1]

ya i got the same answer

[neha 1]

what is the answer for ques 2
 (i) a=b=20 and ( ii) a=b=5 pls check

[Dreyfus]

Q2 a) i) a=10 b=10
         ii)a=5 b=5
Q3a) i)π*=532.5
What about Q3b?

[Spiti]

How is q2 a) i) a=10 and b=10?  pa=pb=1 and budget constraint is a+b=40, MRS=1 we should get a=b=20 right?

[Spiti]

How did you solve Q3a) I) ?  
The problem is of 3rd degree price discrimination right?

[aman]

How did u solve 3 a , plz explain..

[Dreyfus]

a=10 b=10 are satiation point....beyond that mu of each will decline....

[Dreyfus]

I used simple optimization with combined profit function and constraint being Ds+Dn=150

[Spiti]

When you say combined profit function, what exactly do you mean?
Did you not employ third degree price discrimination?

[Dreyfus]

From combined profit function I mean...the total of profit from students and non students customers....in this case there is no total cost associated therefore total revenue from each type of customer is the individual profit function that means total profit =Total revenue from students + total revenue from non students....and yes of course its third degree price discrimination....

[Spiti]

Well, thank you.
For Q3)b) the maximum profit is same as in sub question a, i.e. 532.5 but prices and demand of students and non students are interchanged. Please confirm of you are getting the same.

[Spiti]

Sorry not 3b, 3a(ii)

[Dreyfus]

For 3a.ii) i am nt getting what exactly they mean my interchanging demand func.....

[Spiti]

I understood it as Ds=140-20Ps and Dn=220-40Pn.
Only interchanging s and n. Actually no brainer though.

[Spiti]

For Q4a (i) K=24 I'm getting q=8 and p=12
             (ii) K =18 q=6 and p=14

[bhavya jain]

someone plz tell how o proceed with this 5) b part..

[bhavya jain]

what is the answer to 2) b part