About This Solved Paper
| Prepared by | Unnati Education, IGNOU-experienced academic content writer |
|---|---|
| Qualification | Graduate with specialization in Microeconomic Theory and Consumer Economics |
| Programme | IGNOU Bachelor of Arts Honours Economics (BAECH), Bachelor of Arts Vocational Studies MSME (BAVMSME), Bachelor of Commerce (BCOMF) under FYUP, and Bachelor of Arts Economics (BAFEC) under FYUP |
| Institution Reference | IGNOU Term-End Examination December 2025 |
BECC-105 moves beyond introductory microeconomics into analytical territory that genuinely tests your ability to derive, calculate, and explain. The BECC 105 Question Paper December 2025 covered price effect decomposition using Hicksian and Slutsky approaches, production function numericals, Marshallian demand derivation, cost functions, expansion paths, perfect competition equilibrium, risk behavior, welfare measures, and Walrasian equilibrium. Both diagram accuracy and mathematical derivation carry marks here. Students who study from the actual paper alongside a properly solved version understand what level of analytical depth each question genuinely requires.
What is BECC-105 Question Paper December 2025?
The BECC-105 December 2025 question paper is the Term-End Examination paper for Intermediate Microeconomics I in IGNOU's BAECH programme, carrying 100 marks across three sections with analytical, diagram-based, and numerical derivation questions on consumer theory, production, and welfare economics.
That combination demands something specific from students. You need to solve mathematically, draw and explain diagrams, and write conceptual answers all within the same three-hour sitting. Most students notice that Section A questions carry 20 marks each and span multiple sub-parts, which means a weak answer on any single sub-part costs disproportionately. Working through a properly solved version before your exam shows you how much depth each sub-part actually needs and where marks are most densely distributed.
About IGNOU BECC-105: Intermediate Microeconomics I
BECC-105 is the intermediate microeconomics paper in IGNOU's BAECH programme and it builds directly on the analytical foundations laid in BECC-101. It is more mathematical, more diagram-intensive, and more conceptually demanding than introductory microeconomics. The paper covers advanced consumer theory including Hicksian and Slutsky decomposition, indirect utility functions, and compensating and equivalent variation. On the production side it covers Cobb-Douglas type functions, marginal productivities, MRTS, cost functions, and expansion path derivation.
The December 2025 paper was a thorough examination of all these areas. Section A included price effect decomposition, a Cobb-Douglas production function numerical across four sub-parts, cost function properties and expansion path, and a utility maximisation problem with Marshallian demand derivation and indirect utility function. Section B covered perfect competition equilibrium with diagrams, quasi-linear utility and welfare measures, risk attitudes with diagrams, tax impact analysis, variable proportions and Hicks technical progress classification, Walrasian equilibrium in a pure exchange model, and intertemporal decision-making. Section C offered short concept questions on consumer surplus, Giffen goods, elasticity of substitution, indifference curve properties, Pareto optimality, production function types, homogeneous versus homothetic functions, and shutdown versus break-even distinctions.
BECC 105 Exam Pattern and Marks Breakdown
The BECC-105 December 2025 paper carries 100 marks and runs for 3 hours. Section A contains four questions and students must answer any two, each worth 20 marks. Section B contains seven questions and students must answer any four, each worth 12 marks. Section C contains two questions both of which must be answered, each worth 6 marks. Here is the important part: Section A questions often contain four sub-parts at 5 marks each, which means every sub-part matters. Missing one sub-part in a 20-mark question costs as much as a full Section C answer.
All Questions: BECC 105 Question Paper December 2025 IGNOU (Complete List)
Section A
Explain the decomposition of price effect into substitution effect and income effect for a normal good using Hicksian approach and Slutsky approach. [20]
Consider the following production function:
Q = L0.75 K0.25
where Q = level of output and L and K are factor inputs respectively: [4x5=20]
(i) Find the marginal productivities of L and K.
(ii) Verify the Product Exhaustion Theorem.
(iii) Calculate marginal rate of technical substitution of Capital for Labour (MRTSLK).
(iv) Find out the elasticity of substitution (L, K).
(a) Define a cost function. Discuss the properties of a cost function. [8]
(b) What is meant by 'Expansion Path'? Using isocost and isoquant analysis, explain the derivation of Expansion Path. [12]
Consider a utility function:
U(X, Y) = XY
The prices of the two commodities X and Y are given as PX and PY respectively and income be M. [20]
(i) Find out the Marshallian demand functions of X and Y. Find price elasticity and income elasticity of demand for commodity X.
(ii) Derive the indirect utility function.
Section B
Explain the short-run and the long-run equilibrium of a firm under perfectly competitive market structure. Use diagrams. [12]
Explain using appropriate diagrams, that for quasi-linear utility function, compensating variation and equivalent variation are the same. [12]
What do you understand by the term 'Risk'? Explain using diagram, the concepts of risk aversion, risk loving and risk neutrality. [12]
Analyse the impact of a quantity tax and income tax on the consumer equilibrium. [12]
(a) Explain the law of variable proportions and the relationship between the marginal and the average product of the variable input (labour). [6]
(b) State Hicks' classification of technical progress. [6]
In a two commodities and two consumer pure exchange model, show that a competitive equilibrium is a Walrasian equilibrium. [12]
What do you understand by the term 'intertemporal decision-making'? Discuss with illustrations the constraint encountered in this process. [12]
Section C
Explain any two of the following: [3+3]
(i) Consumer Surplus
(ii) Giffen goods
(iii) Elasticity of Substitution
(iv) Properties of indifference curves
Distinguish between any two of the following: [3+3]
(a) Pareto Optimality and Pareto Improvement
(b) Short-run Production Function and Long-run Production Function
(c) Homogeneous Function and Homothetic Function
(d) Shut down point and Break-even point
BECC 105 Syllabus Topics Covered
Hicksian and Slutsky decomposition of price effect, Cobb-Douglas production function analysis including marginal productivity and product exhaustion theorem, MRTS calculation, elasticity of substitution, cost function properties, expansion path derivation using isocost and isoquant analysis, Marshallian demand function derivation, indirect utility function, price and income elasticity, perfect competition equilibrium in short and long run, quasi-linear utility and welfare measures, risk attitudes including risk aversion and risk neutrality, quantity and income tax impact on consumer equilibrium, law of variable proportions, Hicks technical progress classification, Walrasian equilibrium, intertemporal decision-making, consumer surplus, Giffen goods, Pareto optimality, and shutdown versus break-even distinctions all featured in this paper.
Sample Answer Preview: BECC 105 Intermediate Microeconomics Solved Question Paper
Question 2 is a four-part numerical on the production function Q equals L to the power 0.75 multiplied by K to the power 0.25. A strong answer takes each sub-part separately and shows clear algebraic steps throughout. For marginal productivities, partial differentiation with respect to L and K is performed explicitly. For the Product Exhaustion Theorem, Euler's theorem is applied and verified by showing that the sum of factor payments equals total output. MRTS is derived as the ratio of marginal productivities. Elasticity of substitution follows from the MRTS expression. Students who skip intermediate algebraic steps consistently lose marks even when final answers are correct.
How to Write High-Scoring Answers in BECC 105 Question Paper
For numerical questions, write every differentiation or algebraic step on a separate line. State what you are doing before each step so the examiner can follow the logic even if a calculation error occurs midway. For diagram questions like Hicksian and Slutsky decomposition, draw separate diagrams for each approach and label the substitution effect and income effect components clearly on both. For theory questions in Section B, open with a clear definition, follow with a structured explanation, and include a diagram wherever the question invites one. Section C answers at 3 marks each need one sharp definition and two precise explanatory sentences.
Who Should Use This BECC-105 Solved Question Paper December 2025?
This resource is built for IGNOU BAECH, BCOMF, BAFEC, and BAVMSME students preparing for the December 2025 BECC-105 term-end exam. It also works for students who find Hicksian and Slutsky decomposition confusing in diagram form, those unsure how to present a Cobb-Douglas production function derivation with full working, and learners who understand the theory but lose marks on presentation. If you have studied the textbook but are still uncertain how to write answers at the depth this paper requires, the Unnati solved paper shows you exactly what that looks like question by question.
Why This is Better Than Free BECC-105 December 2025 Question Paper PDFs and Telegram Files
Free files shared informally for economics honours papers often contain theory explanations without any mathematical derivation. For BECC-105, that is a serious problem. Questions 2 and 4 in Section A carry 20 marks each and require step-by-step derivations with correct intermediate steps. An answer that states conclusions without working earns very few marks regardless of whether the conclusion is correct. The Unnati solved paper shows the full derivation for every numerical, describes every diagram with labelled components, and presents theory answers at the right depth for 12-mark and 20-mark questions respectively.
Student Reviews: BECC-105 Solved Question Paper by Unnati Education
"The production function question with four sub-parts was intimidating. The BECC-105 solved paper from Unnati walked through the partial differentiation, the product exhaustion verification, and the MRTS step by step. I followed the same approach in the exam and felt genuinely confident that I had shown enough working." — Ananya R., BAECH December 2025
"I had no idea how to separate Hicksian and Slutsky decomposition clearly in a diagram answer. The solved paper drew out both approaches with separate explanations and helped me understand what each method is actually showing. That question stopped being confusing for me after I studied that one section." — Vikram S., IGNOU BAECH December 2025
How to Get the BECC-105 Solved Question Paper December 2025: Step by Step
Contact Unnati Education on WhatsApp at 9899436384 or 9654279279. Share your course code BECC-105, your name, and your programme details when you message us. You will receive the complete BECC 105 Intermediate Microeconomics Solved Question Paper the same day in most cases. Telegram is available at @unnati_educations and email at info@unnatieducations.com.
Frequently Asked Questions
What topics does the BECC-105 December 2025 question paper cover?
The BECC-105 December 2025 paper covers Hicksian and Slutsky price effect decomposition, Cobb-Douglas production function analysis including marginal productivities and product exhaustion theorem, MRTS and elasticity of substitution, cost function properties, expansion path derivation, Marshallian demand functions, indirect utility functions, perfect competition equilibrium, quasi-linear utility and welfare measures, risk attitudes, tax impact on consumer equilibrium, variable proportions, Hicks technical progress, Walrasian equilibrium, intertemporal decision-making, consumer surplus, Giffen goods, Pareto concepts, and shutdown versus break-even distinctions.
What is the exam pattern for BECC-105 December 2025?
BECC-105 carries 100 marks in a 3-hour paper. Section A has four questions and students answer any two, each worth 20 marks. Section B has seven questions and students answer any four, each worth 12 marks. Section C has two questions both of which are compulsory, each worth 6 marks. Section A questions frequently contain four equal sub-parts at 5 marks each, making it essential to attempt all sub-parts of any question you choose. Leaving a sub-part blank in a 20-mark question costs as much as an entire Section C answer.
Is a solved version of the BECC-105 December 2025 paper available from Unnati Education?
Yes. Unnati Education has prepared a complete solved version of the BECC-105 December 2025 question paper. All questions across Sections A, B, and C are answered with full algebraic working for numericals, labelled diagram descriptions for theory questions, and structured explanations calibrated to each mark allocation.
What is the best approach to prepare for BECC-105?
Begin with the mathematical techniques the paper relies on, primarily partial differentiation for production function questions and utility maximisation using the Lagrangian method for demand function derivation. Then practice drawing and explaining Hicksian and Slutsky diagrams separately until you can produce both clearly from memory. Study cost function properties and expansion path with a worked isocost and isoquant example. For Section B topics like risk attitudes and Walrasian equilibrium, study with diagrams. Working through the December 2025 BECC-105 solved paper from Unnati Education ties all of these skills together in exam format.
How do I contact Unnati Education to get the BECC-105 solved paper?
You can reach Unnati Education on WhatsApp at 9899436384 or 9654279279. Telegram is at @unnati_educations and email is info@unnatieducations.com. Share your course code BECC-105 along with your name and programme when you contact us and we will send the complete solved paper promptly.
About Unnati Education: IGNOU Study Material Experts
Unnati Education has worked with IGNOU students since 2015 from our centre in Vikaspuri, New Delhi. We prepare solved assignments, question papers, practical files, and subject-specific study material for BAECH, BCOMF, BCA, B.Ed, CBSE, and NIOS programmes. All academic content is prepared by subject-experienced writers who understand the IGNOU examination system and what examiners look for in both mathematical derivation and diagram-based theory answers across different mark allocations.
Explore More IGNOU BECC-105 Solved Papers and Study Material
This page is part of a wider resource library at Unnati Education covering IGNOU BAECH and economics programme courses across all course codes. Solved question papers for June and December examination cycles, assignment solutions, and chapter-wise study notes are available for BECC-101, BECC-103, BECC-105, and beyond.
Get Your BECC 105 Question Paper December 2025 Solved Paper Now
BECC-105 demands mathematical derivation, diagram precision, and conceptual depth across 100 marks in a single paper. The BECC-105 Question Paper December 2025 tests intermediate microeconomics at a level where presentation and working matter as much as correct answers. Contact Unnati Education today on WhatsApp at 9899436384 or Telegram at @unnati_educations and receive your complete BECC-105 solved paper the same day.