087/2023

Maximum : 100 marks

Time : 1 hour and 30 minutes

1. Of the following which is True?
(^) Given any one utility function, any monotonic transformation of it will represent
different preferences
(B) Given any one utility function, any monotonic transformation of it will represent
the same preferences

(C) Given any one utility function, any monotonic transformation of it will not
represent the same preferences

(D) Given an array of utility functions any monotonic transformation will not in any
way represent the same preferences

2. Which of the following is True in the case of Bertrand Competition?

(A) Firms set their quantities and market determines the price
൯ Firms neither set their quantities nor the price
(C) Firms set their prices and market determines the quantity

(D) Firms either set their prices and or their quantities, but markets do not have any
role

3. The demand theory applicable to situations involving measurable risk has been developed by :

(A) Neumann-Morgenstern (B) JR Hicks
(6) W.E. Armstrong (D) कर्ण, Samuelson

4. The following statements relate to the P.W.S Andrews’ critique of the Chamberlin’s model of
Monopolistic Competition. Which of the following statements is/are Not True?

0) Chamberlin’s demand curve implies irrationality of consumer’s preferences in the long
run

(ii) Chamberlin’s demand curve is applicable only for those rare cases where a firm sells
directly to the final consumer, and this only in a short-run analysis.

(iii) Chamberlin’s demand curve ignores the bulk of the final demand transactions carried
out by retailers and wholesalers

(iv) The part of the demand for a product arising from retailers and wholesalers cannot give
rise to a downward-falling demand curve.
(¢) Only (iii) and (1೪) (B) Only @), (ii) and (iii)
(C) Only Gi) and (ii) (D) None of these

[P.T.0.]