26.
27.
28.
29.
30.
31.
ತತ

33.

34.
35.

36.

4
Derive an input-output technical co-efficient.
What are the factors that influence the MPS ?
Determine the profit maximizing condition of a multi plant monopolist.
Distinguish between homogeneous and homothetic utility functions.
Illustrate average revenue and marginal revenue using an example.
Discuss the meaning and applications of Lagrange multiplier.
Distinguish between increasing and diminishing returns to scale.

‘
Section D

Answer any two questions.
Each question carries 13 marks.

Answer the following :

C 1381

(4 x 6 = 24 marks)

a) Discuss the mathematical conditions for achieving equilibrium in a perfectly competitive

market.

b) Find the profit maximizing output where TC = Q? - 7Q? + 12Q +5, price (p) is 8.

State and prove the properties of Cobb- Douglas production function. Foint out its major limitations.

Discuss the equilibrium conditions of a discriminating monopolist. Identify the advantages and

disadvantages of price discrimination.

Explain various methods of measuring price elasticity of demand using numerical examples. Analyze

the significance of cross elasticity of demand.

(2 x 13 = 26 marks)