1. Opportunity costs are the ‘costs of sacrificed alternatives.’ Discuss with the help of examples.
2. How are income effect and substitution effect important in explaining the negative slope of demand functions? Explain giving examples from real world.
3. When there are 2 inputs K, L, given the price of capital (PK)= 10 and price of labour (PL)=20. Total Expenditure C=100. Draw and explain the effect on the isocost curve in case of the following: –
(i) decrease in price of labour (PL)=10
(ii) increase in the price of capital (PK)= 20
(iii) decrease in the price of capital (PK)= 5
(iv) increase in the firms budget with no change in the price of labour and capital.
4. Explain the difficulty in sustaining collusion with the help of prisoner’s dilemma.
5. Briefly discuss the Chronology of Indian Telecom Deregulation from the year 2003 to present times.
6. Write short notes on the following:-
(a) Market Demand curve
(b) Optimal Input Combination
(c) Peak Load Pricing
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