Course Code: ECO-02
Course Name: Microeconomics
Assignment Code: ECO-02/TMA/2023-24
Question 1: Consumer Equilibrium and Indifference Curves (15 marks)
a) Explain the concept of consumer equilibrium using indifference curves.
b) Illustrate the concept of consumer equilibrium graphically.
c) Discuss the conditions for consumer equilibrium.
Question 2: Production Theory: Production Function (20 marks)
a) Define the production function and explain its significance.
b) Explain the law of variable proportions with the help of a hypothetical production function.
c) Discuss the relationship between the production function and the average product of labor.
Question 3: Theory of Costs: Short-Run Costs (15 marks)
a) Explain the concept of fixed cost, variable cost, and total cost in the short run.
b) Derive the short-run cost curves (total cost, average cost, and marginal cost) using a hypothetical cost function.
c) Discuss the relationship between the short-run cost curves.
Question 4: Market Structures: Perfect Competition (20 marks)
a) Define perfect competition and explain its main features.
b) Discuss the conditions necessary for perfect competition to exist.
c) Analyze the equilibrium conditions in a perfectly competitive market.
Question 5: Market Structures: Monopoly (15 marks)
a) Define monopoly and explain its main features.
b) Discuss the conditions necessary for a monopoly to exist.
c) Analyze the equilibrium conditions in a monopoly market.
Question 6: Pricing Practices: Price Discrimination (15 marks)
a) Define price discrimination and explain its different forms.
b) Discuss the conditions necessary for price discrimination to be successful.
c) Analyze the welfare effects of price discrimination.
Note: The word limit for each answer should be around 350-400 words.