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Old March 16th, 2016, 02:43 PM
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Default Assignment of IGNOU

Hello sir, I am Sanskar. I am form Delhi. I am pursuing MA Economics from IGNOU. Can you help me by providing me with the assignment for MA economics of IGNOU?
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Old March 16th, 2016, 03:51 PM
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Default Re: Assignment of IGNOU

As you have asked about the MA Economics assignment of IGNOU, I am giving you information regarding it

Consider the market for used cars. There are 100 cars for sale; half of them are bad while the others are good. The owner of a bad car is willing to sell it for any price above Rupees 400 but the owner of a good car is only willing to sell it for at least Rupees
1000. The bad cars are worth Rupees 600 to buyers, and some are worth Rupees 1200 to them.
a) At a Pareto efficient allocation which car will be sold?
b) If buyers cannot observe the quality of the car for sale, how much would they be willing to pay for a car?
c) Which cars will be sold in equilibrium in this market?
d) Suppose that the fraction of the cars in the market is good. If buyer still cannot observe the quality, how large must is for cars to be sold in equilibrium?

Answer all the questions from this section.
5×12=60
a) Define’ Nash equilibrium’ and explain with the help of the game ‘Prisoner’s Dilemma’.
b) Provide an example of a game with multiple Nash equilibrium.
c) Find all the Nash equilibrium of the following game.

a) What do you mean by a pure public good?
b) There are only two individuals A and B in an economy. Their respective valuation curves for a public good, x, are given by MVA = 100-2x and MVB = 25-x. The marginal cost of providing the public good is given by MC = 100 + 2x. Find the socially efficient quality of public goods.
4.
a) Assume that there are four firms supplying a homogenous product. They have identical cost functions given by C (Q) = 40 Q. If the demand curve for the
industry is given by u= 100-Q
find the equilibrium industry output if the producers are Cournot competitors. What would be the resultant market price? What are the profits of each firm?
b) How do you explain the prevalence of high wage rate along with unemployment in an economy, using the efficiency wage mode



IGNOU MA Economics Assignment






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File Type: pdf IGNOU MA Economics Assignment.pdf (94.2 KB, 20 views)
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