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LOVELY PROFESSIONAL UNIVERSITY Form/LPU(The format to be used forPlanning the academic activities other than Lecturers/Tutorial/Practical

like Assignments, Case study, Presentation, Quiz, Projects, Class tests, industrial visits, teaching practice, courtvisits etc. to be undertaken as a part of the continuous assessment for the Course)

Home-Work3

School: LSB

Name of the faculty member: ATIN GARG

Course No. ECO111 Course Title: Micro Economics

Class: BBA Semester I Section: R1013

Max. Marks: 15 Date of Allotment:

S. no. Roll No. Topic

No.

Objectives of Academic

Activity

Topic Evaluation Details

Eachstudent

willattempt all

the

questions.

To make the students

understand the basics of

competitive market forms and

ability apply these concepts in

real life.

Each student will attempt all thequestions given in the assignment i.e.

15 questions for each student. A testwill be conduct after submission of

assignment. There are 5 marks for

submission. But only those students

will be allowed to sit in test those

who have submitted their

assignments. (Submission means

assignment uploaded on UMS). 2

questions will asked in test out of the15 questions of assignment and

evaluations will be done out of 10

marks.

Date: Sign. of Faculty member

Remarks by HOD (Mandatory)

Sig. of HOD with date

Remarks by HOS (Mandatory)

Sig. of HOS with date

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HW 3

Q1 A particular car manufacturer regards his business as highly competitive as he is

keenly aware of his rivalry with other car manufacturers. Like others, he undertakes

vigorous advertising campaigns and seeks to convince potential buyers of superior

quality and better style of his automobiles and reacts quickly to claims of

superiority by his rivals. Is this an example of monopolistic competition? Explain.

Q2 There are practically very few real life instances of perfect competition. Even so

it is debatable if these few examples meet all the criteria of perfect competition.

Which industry would you like to specify for perfect competition in the Indian

scenario? Support your answer with relevant reasons.

Q3 The restaurant business comprises of several producers selling differentiated

products priced differently according to quality, ambience, location and other

factors. Which market structure characterizes this business? Critically analyze your

answer with appropriate reasoning.

Q4 Kinked demand curve operates in the mobile phone service provider market.

(Airtel, TATA Docomo, Vodafone, Reliance etc.).Do you agree with this statement?

Explain your answer critically giving reasons to support your answer.

Q5 The Organization of Petroleum Exporting countries (OPEC) comprising of seven

Oil producing Nations is an oligopoly. Do you agree with this statement? Analyze

your answer giving reasons in support of your argument.

Q6 Perfect competition implies perfect dissemination of information aboutproducts and pricing in the market. Give an example of a market from the real

world where this could actually happen.

Q7.What is the most important reason for rise and spread of oligopolies in the

global market such as banking and pharmaceuticals? Explain your answer with

appropriate reasoning.

Q8. Give an example of a monopoly from the Indian economy. Do you think that

monopoly creates inefficiency in the market?

Q9. Explain if the following companies are a part of perfect com

monopolistic competition, monopoly or oligopoly. Give a reason to support your

answer.

(a) Lovely professional University

(b) State Bank of India

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Q10. If I sell a perfume concentrate which goes as raw material into manufacture

of perfumes, I could be a part of perfect competition, but if I sell branded perfumes,

I could be a part of monopolistic competition. Critically analyze this statement.

Q11. Give an example of an oligopoly from the Indian market.

Q12. The demand curve is perfectly elastic in perfect competition but downward

sloping in monopolistic competition. Explain this statement taking examples from

the real world.

Q13 Analyze if following companies are a part of perfect competition, monopoly,

monopolistic competition or oligopoly.

(a) Google

(b) Kingfisher Airlines

Q14 an increase in the demand for films is likely to increase salaries of actors andactresses. Is long run supply curve for films likely to be horizontal or upward

sloping?

Q15. Commodities are generally part of perfect competition but introduction of

brands introduces monopolistic competition. Critically analyze this statement.