LOVELY PROFESSIONAL UNIVERSITY Form/LPUO/AP-3

(The format to be used for Planning the academic activities other than Lecturers/Tutorial/Practical
like Assignments, Case study, Presentation, Quiz, Projects, Class tests, industrial visits, teaching practice, court
visits etc. to be undertaken as a part of the continuous assessment for the Course)
Home-Work3
School: LSB Department of Management
Name of the faculty member: ATIN GARG
Course No. ECO111 Course Title: Micro Economics
Class: BBA Semester I Section: R1013 Batch 2010
Max. Marks: 15 Date of Allotment: Date of Submission:

S. no. Roll No. Topic Objectives of Academic Topic Evaluation Details

No. Activity
Each To make the students Each student will attempt all the
student questions given in the assignment i.e.
will understand the basics of 15 questions for each student. A test
attempt all will be conduct after submission of
the competitive market forms and assignment. There are 5 marks for
questions. submission. But only those students
ability apply these concepts in will be allowed to sit in test those
who have submitted their
real life. assignments. (Submission means
assignment uploaded on UMS). 2
questions will asked in test out of the
15 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

 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 about

products 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 competition,

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

(a) Lovely professional University

(b) State Bank of India

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 and
actresses. 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.