Answer the following questions.
Question 1) State and describe the law of diminishing marginal utility.
Question 2) What is homogeneous production function? Mention the properties of any such function.
Question 3) What are the controls over monopolist from charging a very high price?
Question 4) Write a brief note on ’Product Exhaustion Theorem.
Question 5) What do you mean by Pareto optimum?
Question 6) What is compensation principle of judging change in social welfare brought about by the adoption of an economic policy?
Question 7) How is wage rate determined in a perfectly competitive labour market?
Question 8) What is kinked demand curve? How does it help in descrbing price rigidity under oligopoly?
Question 9) Describe how price effect is broken into income effect and substitution effect with the aid of revealed preference theory of demand.
Question 10) Describe the linear programming approach to the theory of production.
Question 11) Describe the features of the Cournot model of duopoly. What are its limitations?
Question 12) Describe the marginal productivity theory of distribution and compare it with the modern theory of distribution.
Question 13) What are the conditions of welfare optimum? Explain it.