Introduction Below are the complete solved answers for the IGNOU MEC-101: Micro Economic Analysis Tutor Marked Assignment (TMA) for the academic year 2024-25. Click on each question below to view its full answer in simple, student-friendly language. Assignment Questions with Answer Links 1. a. The production function of a small factory that produces and sells […]
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Introduction Below is the list of answers for the MEC-101: Micro Economic Analysis assignment for the 2024-25 session. Each question has been answered in simple language and in detail. Click the links below to access each individual answer. Answer Links The production function of a small factory that produces and sells toys… Define the term
MEC-101 Micro Economic Analysis – Solved Assignment 2024-25 Read More »
Introduction This answer presents short notes on four important microeconomic concepts: von Neumann-Morgenstern (vNM) expected utility theory, Slutsky’s theorem, Arrow-Pratt measure of risk aversion, and the Bergson-Samuelson social welfare function. These are key tools in decision theory, consumer behavior, risk analysis, and welfare economics respectively. (a) vNM Expected Utility Theory The von Neumann-Morgenstern (vNM) expected
Introduction In an oligopolistic market structure, a few firms dominate and make decisions strategically, keeping in mind the reactions of their competitors. The Cournot model is a foundational model of duopoly (two-firm competition) where firms choose output levels simultaneously to maximize their profits, assuming the other firm’s output is fixed. This question involves solving for
Introduction Wages play a crucial role in attracting, motivating, and retaining employees. While the minimum wage is set by law to ensure a basic standard of living for workers, many firms voluntarily pay wages above this level. The efficiency wage model offers a theoretical explanation for why paying higher-than-minimum wages can be beneficial not only
Introduction Investment decisions often involve uncertainty. In such situations, investors rely on tools like expected value and variance to evaluate potential outcomes and associated risks. The expected value gives a measure of the average return one can anticipate, while the variance tells us how much the returns fluctuate around the average. In this answer, we
Introduction Pareto optimality, also known as Pareto efficiency, is a fundamental concept in welfare economics. It refers to a situation where resources are allocated in the most efficient way possible, meaning that no individual can be made better off without making someone else worse off. Named after the Italian economist Vilfredo Pareto, this concept is
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Introduction The Prisoner’s Dilemma is one of the most famous examples in game theory that demonstrates how two individuals may not cooperate, even if it is in their best interest to do so. In this question, we are given a payoff matrix with the number of years in prison that individuals A and B might
Introduction Game theory is a fundamental concept in economics and social sciences that studies the strategic interactions among decision-makers, also known as players. These players make decisions based on the anticipated actions and responses of other players. A critical classification in game theory is between games of complete information and games of incomplete information. Understanding
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Introduction John Rawls was a prominent 20th-century philosopher best known for his work on political philosophy and moral theory. In his influential book “A Theory of Justice,” Rawls proposed a new way to think about justice in society. He introduced the concept of “Justice as Fairness” and developed two core principles of justice that aim
What are the two principles of justice as mentioned by the philosopher Rawls? Read More »
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