MEC 003 Solved Assignment 2022-23

QUANTITATIVE METHODS FOR ECONOMIC ANALYSIS

Course Code: MEC 003

Asst. Code: MEC 003/TMA/2022-23

Total Marks: 100

SECTION A

Answer the following questions in about 700 words each. The word limits do not apply in case of numerical questions. Each question carries 20 marks.

1. The derivatives have wide application in economics. Explain the following through derivatives:

4 X 5 = 20

(i) Average Revenue and Marginal Revenue

(ii) Average Cost and Marginal Cost

(iii) Elasticity of demand

(iv) Constant Elasticity Demand Curve

2. (i) If the second derivative is zero at a point, the function may have a maximum, a minimum or a point of inflexion. In the light of this statement, explain a maximum, a minimum and point of inflexion.

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(ii) Find the point of inflexion for the following functions

5

(a) f(x) = 3x3 + 4

(b) f(x) = x3 + x2 + x + 1

SECTION B

Answer the following questions in about 400 words each. Each question carries 12 marks.

3. Explain any two economic applications of Definite Integral. Use examples to illustrate the applications.

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4. Under perfect competition, there is a firm producing two products. Quantity of first product is q1 and quantity of second product is q2 . Prices of both commodities must be taken as exogenous. The price of first product is given by p1 = 5 and the price of second product is given by p2 = 3. The firm’s cost function is assumed to be C = 2q1 2 + 2q2 2 + q1q2. Find out the following:

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a) firm’s revenue function

b) firm’s marginal cost function for first product

c) firm’s marginal cost function for second product

d) firm’s profit function

e) the value of q1 and q2 that maximise the firm’s profits

f) Value of Hessian matrix

5. (i) What is a partial derivative? Find the partial derivative of: f (x1 , x2 ) = 4x1 + 5x1x2 + 2x2

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(ii) What is a cross partial derivative? Find the cross partial derivative of: f (x1 , x2 ) = 4x3 + x2 4 + 3x1 3x2 4 + 5x1 x2

4

(iii)What is a total differential? Find out the total differential of: f (x1 , x2 ) = 10x1 + x2 4 + 2bx1x2 + 5x2

6. What do you understand by constrained optimisation? Let the utility function be U (X, Y) = X2 + Y. Price of commodity X is Px = 2 and price of commodity Y is Py = 1. The income is M = 200. Find out the equilibrium quantities of X and Y, given the constraint M = PxX+ PyY.

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7. Write short notes on the following:

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(i) Algebraic function and Non-Algebraic function

(ii) Right-hand limit and left-hand limit

(iii) Probability distribution function

MEC 003 Solved Assignment 2022-23 : All assignments are in PDF format which would be send on email/WhatsApp (9958676204) just after payment.

POST GRADUATE DIPLOMA IN AUDIO PROGRAMME PRODUCTION Master's Degree Programmes (M.A. ECONOMICS) ASSIGNMENTS

Dear Learner,

You have to submit one assignment in each course, i.e. MEC 003. All these are Tutor Marked Assignments (TMAs). Before attempting the assignments, please read the instructions provided in the Programme Guide carefully.

Kindly note, you have to submit these assignments to the Coordinator of your Study Centre within the stipulated time for being eligible to appear in the term-end examination. You must mention your Enrolment Number, Name, Address, Assignment Code and Study Centre Code on the first page of the assignment. You must obtain a receipt from the Study Centre for the assignments submitted and retain it. Keep photocopies of the assignments with you.

After evaluation, the assignments have to be returned to you by the Study Centre. Please insist on this and keep a record with you. The marks obtained by you will be sent by the Study Centre to the Student Evaluation Division at IGNOU, New Delhi.

Guidelines for Doing Assignments

There are five questions in each assignment, all carry equal marks. Attempt all the questions in not more than 500 words (each). You will find it useful to keep the following points in mind:

Planning: Read the assignments carefully. Go through the units on which they are based, make some points regarding each question and then rearrange them in a logical order

Organization and Presentation: Be analytical in your selection of the information for your answer. Give adequate attention to the introduction and the conclusion. Make sure that your answer is logical and coherent; has a proper flow of information.

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