JNU 2009 Doubts

[ViV]

What should be the answer for Q.3 according to you???

[Anjali]

The answers are weird ! :p
I suppose had it been p=12 , we would have marked option 3 as ans. but here its price >=12
I marked E . Not sure of the ans
In competitive firms , do we take average cost as increasing or decreasing ?

[Arushi :))]

For 24th the answer is d..
At p = 50, quantity demanded is 50 units.
So, p= 50 is charged for 50 units.
Also, it is a case of first degree price discrimination , so to extract the consumer surplus ,in addition 1250 Rs are charged..

[Bin]

@Arushi

How is A3 c?

Shouldn't the price be Rs 12 itself and not more since it is a competitive firm?

How do you solve A14?

[suvidya patel]

1-b
4-d
5-d
8-c
9-d
10-a
11-a
12-d
17-c
19-d

[suvidya patel]

arusi plz explain qno-24 ,flAt fee

[Ridhika]

Hey Viv and Arushi..
My anwers which differ are as follows:

Ans 8) I agree with Viv .. it should be (c) .. diminishing MRS insures that preferences are convex or "well behaved" to use varian terminology. And if preferences are convex MRS = price ratio is a sufficient condition. In other cases however i agree it is neither necessary nor sufficient.

Ans 19) should be a according to me.. A perfectly elastic demand curve is horizontal.. so in a sense the demand curve has already nailed down the price (say p*) at which positive quantity can be sold. at all other prices dm=0. At p* any quantity can be sold. So p*= marginal revenue. Also for any qty sold total revenue = qp*. therefore average revenue = qp*/q = p*. So AR= p*=MR

For any firm we know profit maximizing conditon is MC = MR
so here it can also be written as MC=AR

Ans 20) I still think its b.. because at least 270 includes the possibility that it is 270.. which is correct..

Ans 24) None of the options make sense to me .. I thought the idea of first degree price discrimination is that you can charge different prices to each and every agent and charge what they are willing to pay.. How can any flat or two part fee do this.. i dont know

[Ridhika]

My answers to part B.. guys please verify:

1) Q=0
2) No
3) (50,50)
4a)5000
4b) Dont know :( please tell!

6) 2.8%
7) Neither is better off

10a) 13.33

[SoniaKapoor]

how did you solve 10??baki matched

[Ridhika]

ans 10)

price of 10kg apples in india = 10*100 = 1,000

Convert this to USD = 1,000/50 = $20

Now see how many bundles of 10kg apples this can buy in usa = 20/15= 4/3 = 1.33

:)

[jane]

I agree... dd curve here is perfectly elastic, so horizontal at the level of mkt price... so the price fixed here. then m.r would be same as p=a.r and at eqbm a.r=m.c.... shouldn't it?  a.r > m.r holds when ddcurve is downward sloping... what d u think?

[kangkan]

Hiii.is there a answer key by amit sir for jnu sss 2013?