Time: 2:00 hours Maximum Marks: 30
Attempt any six questions. All questions carry equal marks.
- Classify the following elements into basic conditions, market structure, conduct and performance:-
Number of sellers and buyers, pricing bahaviour, Barriers to entry, Product strategy, Production and Allocative efficiency, Technology, Research and innovation, Technical progress, Product differentiation, Unionization ½ *10
- Write short notes on any five: 1 * 5
a) Differentiate between Chicago School of Thought & SCP Approach
b) Up-stream and Down-stream integration
c) Concentration Curve
d) Berry’s diversification index
e) Limit Pricing
f) Strategic entry deterrence
- Briefly discuss the contributions of Stigler, Demsetz & Bain in defining entry barriers. How product proliferation works as a deterrent to entry? 2 ½ + 2 ½
- Briefly discuss the various diversification measurement indices. Is it true if the specialization ratio of a firm is zero then firm is a specialized firm? 4 + 1
- “Public policy has an important role to deal with horizontal mergers.” Explain above statement with reference to Williamson model of real cost saving in horizontal mergers. 5
- Discuss different factors leading to diversification. Explain the determinants of diversification. 2 ½ + 2 ½
- Critically evaluate the impact of market structure on innovation. 5
- If output X is initially produced by competitive industry using two inputs A and B where A is supplied by the monopolist and B is supplied competitively, does the monopolist have an incentive to take over production of X? 5
- How did Demsetz prove that a monopolist has no special disincentive for invention? 5
- If there are ten equal sized firms, what will be HHI concentration ratio? Explain the role of scale economics in the determination of market concentration. 2 + 3
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