Federal Urdu University

Institute of Business Management

Semester: SUMMER Course Instructor: Irfan Lal Total Marks:10 Date:18/07/2014 AssignmentAssignment No.2No.2

Q1# Explain Utility, Marginal Utility, Law of diminishing marginal Utility, law of eui-marginal utility?

Q#2 Show the relationship between total utility and marginal utility with the help of graph?

Q#3. Explain price effect, substitution effect, income effect, in case of normal good and inferior good? Explain ICC and PCC with the help of graph?

Q#4 Draw Marshallian, and Heckhsian demand curve, what do you understand by compensated or uncompensated demand curve?

Q #5. (a): Prove that Price Effect is equal to the Income Effect plus Substitution Effect. (b): Prove that Consumer maximize his utility where MRS is equal to MRT.

Q#6. Define production, factorS of production, the marginal product of labor and marginal product of capital?

Q#7 Explain iso-cost line its equation and defines producer equilibrium with the help of graph?

Q#8 Explain the concept of Explicit cost, Implicit cost, sunk cost and opportunity cost? Find out TVC, AVC, MC, and AC with the help of below total cost function

TC= 200+20Q+10Q3 +5Q2 Total fixed cost is 200. Q=10

Q#9 Discuss the short run Costs with the help of the schedule and diagrams, Why does MC curve intersect AC at its minimum point and why does AC curve U-shaped?

Q#10 State and explain the Law of variable proportion or three stages of production With the help of schedule and diagram?

Q#11 Differentiate indifference curve and Iso-quant curve and explain properties of Indifference curve? Q# 12 Explain return to scales with the help of diagram and functions?

Q#1 Define Market and types of market, explain basic assumptions of Perfect competition?

Q#13 Explain all possibilities of perfectly competitive firm in short run and long run with the help of diagrams?

Q#14 Explain Monopoly Causes of Monopoly and its possibilities with the help of diagrams? Q#15 Differentiate profit maximizing and profit satisfying behaviors of the firm?

Q#16 Differentiate Perfect competition and Monopoly, Draw Demand and supply curve of Perfect competitive and monopoly firm?

Q#17 Describe the deadweight loss, producer and consumer loss with the help of a diagram?

Q#18 Explain all models of Cooperative and Non Cooperative Oligopoly market? (Cartel, Cornet, Bertrand, Stackleberg and Nash equilibrium)

Q#19 Differentiate Competitive and monopolistic market equilibrium?