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 ECO401 Paper (Economics) Midterm

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PostSubject: ECO401 Paper (Economics) Midterm   Tue Oct 25, 2011 1:59 pm

ECO401 Paper
(Economics)
Midterm


1. Equation of total revenue (TR) is given below
TR = 100Q – Q2
If Q =3 than calculate average revenue and slope of average revenue.
2. Explain the traditional theory of firm with the help of its basic equation.
3. Give the degree of discrimination of the following
a. an electric power supply company uses block prices for electric sales.
b. An airline company charges different ticket rates to passengers
c. Tennis court owner charges different from child and young ones
d. Producers sells commodity abroad at lower price and higher price in local market
e. Doctor charges high prices to rich than poor.
4. What would be the shape of indifference curve in each of the following?
a. A, B are two brands of the same product, consumer can not tell the difference whether which is good
or preferred.
b. X is good and Y is bad like household refuses.


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