List of top Microeconomics Questions

The long-run cost function of all identical firms in a perfectly competitive industry is given by: \[ C = 25q - 3q^2 + 1.5q^3 \] The market demand function is: \[ P = 2500 - 0.25Q \] The number of firms in the industry at equilibrium is _________ (in integer).
Suppose Vijay has purchased a high-speed car worth ₹1000000. During the purchase, an Insurance company has shared the latest available road safety survey, wherein it is mentioned that, due to heavy congestion on roads, there is a 40% chance of an accident within the first year of car purchase resulting in loss of the car value by 60%. Vijay’s utility function for wealth (W) is given by \( U(W) = \ln(W) \). If Vijay plans to buy an accident insurance having a premium of 30%, then he will purchase an insurance of ₹_________ (round off to the nearest integer).
Trisha’s consumption preference on biryani \( (x) \) and pudding \( (y) \) is given by the utility function \( U(x, y) = x + 4y \). The price per unit of biryani is ₹2 and the price per unit of pudding is ₹3. Trisha’s total income is ₹120. However, she faces an extra quantity constraint as she is not allowed to consume biryani more than 60 units and pudding more than 30 units. The optimum quantity of biryani and pudding consumed by Trisha is
Consider the following demand–supply model, where
Demand function: \( P = Q^2 - 12Q + 35 \)
Supply function: \( 4P - 3Q = 0 \)
The stable market equilibrium price-quantity combination will be
Consider a Cournot type \( n \)-firm natural spring oligopoly where the market demand for natural spring water is given by \( P(Q) = a - Q, a>0 \). The \( n \) firms are symmetric. Each firm incurs a bottling cost of \( C_i = c q_i, c>0 \) and \( a>c \). The equilibrium market price will be:
Walras’ Law implies that if there are \( N \) markets in the economy, then one only needs to find equilibrium prices in
Consider a duopoly market in which the market demand function is as follows: \( P = 40 - Q \). For the two firms producing with identical marginal costs of 10, the Bertrand-Nash equilibrium price will be: