About This Solved Paper
| Prepared by | Unnati Education, IGNOU-experienced academic content writer |
|---|---|
| Qualification | Graduate with specialisation in Microeconomic Theory and Game Theory |
| Programme | IGNOU Bachelor of Arts Honours Economics (BAECH), also relevant for BAVMSME, BCOMF (FYUP), and BAFEC (FYUP) programmes |
| Institution Reference | IGNOU Term-End Examination December 2025 |
Intermediate Microeconomics-II pushes your understanding into genuinely advanced territory. BECC 108 Question Paper December 2025 covers Cournot and Stackelberg duopoly models, Bertrand competition, game theory including Prisoners' Dilemma and extensive form games, externalities and Pigouvian taxation, public goods and free rider problems, welfare economics, price discrimination, and two-part tariff pricing. These topics demand both numerical accuracy and conceptual depth in every answer. Getting them right under exam pressure requires serious preparation. Unnati Education has built this solved paper directly from the actual December 2025 question paper to give IGNOU BAECH students the structured support they need.
What is BECC-108 Question Paper December 2025?
The BECC-108 December 2025 question paper is the official IGNOU Term-End Examination for Intermediate Microeconomics-II under the BAECH programme, carrying 100 marks with theory, numerical, and diagram-based answers across three sections.
This paper combines economic theory with game theory and welfare analysis in a way that few other BAECH papers do. The Cournot equilibrium question requires you to derive reaction curves algebraically and solve for output, price, and profit simultaneously. The Prisoners' Dilemma question needs a payoff matrix and dominant strategy explanation. The public goods question asks for the Samuelson condition derivation. Each of these has a specific structure that earns marks, and the solved paper shows you exactly what that structure looks like for each question in this paper.
About IGNOU BECC-108 - Intermediate Microeconomics-II
BECC-108 is one of the most analytically rich papers in the BAECH programme. Duopoly theory covers three models in depth. Cournot assumes firms set quantities simultaneously and derives equilibrium through reaction functions. Stackelberg introduces a leader-follower dynamic where the leader anticipates the follower's response. Bertrand assumes price competition and demonstrates why the equilibrium collapses to marginal cost pricing when firms are identical.
Game theory extends this into broader strategic settings. The Prisoners' Dilemma shows why rational players reach a collectively suboptimal outcome. Extensive form games introduce sequential decisions, and backward induction finds the subgame perfect equilibrium. Welfare economics covers the contract curve, the two welfare theorems, and social welfare functions ranging from the utilitarian to the Rawlsian approach. Externalities are corrected through Pigouvian taxes. Public goods present the free rider problem and optimal provision through the Samuelson condition. Most students notice that each of these topics has its own answer logic, and the solved paper makes that logic explicit throughout.
BECC 108 Exam Pattern and Marks Breakdown
The paper carries 100 marks over three hours. Section A has four questions of 20 marks each and you must attempt any two. These are the heaviest questions covering duopoly models, externalities, price discrimination, and market structure comparisons. Section B has seven questions of 12 marks each and you must attempt any four. These cover game theory, welfare economics, asymmetric information, public goods, and pricing strategies. Section C has two compulsory questions of six marks each. Question 12 asks for short notes on any two of four given topics, and Question 13 asks for differences between any two of four given pairs. Preparing across all sections with awareness of mark allocation is essential.
All Questions - BECC 108 Question Paper December 2025 IGNOU (Complete List)
Section A - Answer any two questions. Each question carries 20 marks.
(a) The market demand in a duopoly is given by P = 20 - 2Q, where Q = q1 + q2. q1 is the output produced by duopolist 1 and q2 is the output produced by duopolist 2. The marginal cost is Rs. 5. Using reaction curves, derive the Cournot equilibrium. Find the equilibrium levels of q1, q2, P and profit levels of the two firms.
(b) If duopolist 1 becomes a Stackelberg leader and duopolist 2 becomes follower, what will be the equilibrium output levels and their profit levels?
(a) What is a Pigouvian tax? How does it help in correcting the market failure in the presence of negative externalities? Show it with the help of a diagram.
(b) Two roommates A and B are deciding to buy a TV set. The cost of the television set is Rs. 5,000. Both A and B value the television at Rs. 3,000 each. The joint valuation is greater than the cost. The roommates are independently deciding to choose whether to buy or not buy the TV set. Explain the Free Rider problem. Explain the Nash equilibrium under the situation.
(a) Calculate the output, prices and profits for a third degree monopolist who faces two different demand functions: q1 = 8 - p1 and q2 = 6 - (2/5)p2 Marginal cost = Rs. 2. Explain the difference in prices in terms of elasticity of demand in the two markets.
(b) Explain the deadweight loss under natural monopoly diagrammatically.
(a) How is short-run equilibrium in perfectly competitive market structure different from that in monopoly? Draw and explain it for a firm in the two markets.
(b) Given the market demand for a monopoly P = 80 - 20Q. Calculate the price-marginal cost markup and the level of profits if the total cost is C(Q) = 20Q.
Section B - Answer any four questions. Each question carries 12 marks.
(a) Explain how, due to the presence of lemons in the second-hand car market, plums do not get sold. What is this problem called?
(b) What is the general equilibrium condition for overall efficiency? Draw and explain.
Illustrate the concept of dominant strategy equilibrium, using the Prisoners' Dilemma game.
Explain why P1 = P2 = Marginal cost is the only equilibrium in Bertrand game where two firms 1 and 2, charge prices P1 and P2 respectively.
In the following extensive form game: Player A choosing Left or Right, followed by player B choosing Attack or Not Attack at each node, with payoffs (2,3), (4,4), (3,2), (0,0): (a) Write the actions as well as strategies of the players. (b) Find the subgame perfect equilibrium using Backward induction. (c) Depict the game in normal form.
Derive the optimal provision condition of public goods. If this condition is violated, how is at least one individual made better off?
What are isowelfare curves? Draw the isowelfare curves for a utilitarian and Rawlsian social welfare functions of a society.
What is the difference between Oi's solution and alternate method using the profit maximizing unit price in the two-part tariff pricing scheme?
Section C - Answer both questions.
Write short notes on any two of the following: 2x3=6
(i) Contract curve (ii) Production Possibility curve/Transformation curve (iii) Deadweight loss in monopoly (iv) Moral hazard
Differentiate between any two of the following pairs: 2x3=6
(i) Stackelberg and Bertrand Models (ii) First Welfare and Second Welfare Theorem (iii) Features of Monopoly and Oligopoly market structures (iv) Public and Private goods
BECC 108 Syllabus Topics Covered in Question Paper
This paper covers the advanced microeconomic toolkit of BECC-108 comprehensively. Duopoly theory through Cournot, Stackelberg, and Bertrand models forms the industrial organisation core. Game theory spans strategic form games, dominant strategies, Nash equilibrium, extensive form games, backward induction, and subgame perfect equilibrium. Welfare economics covers the contract curve, production possibility frontier, welfare theorems, and social welfare functions. Market failures include externalities corrected by Pigouvian taxes, public goods with free rider problems, and asymmetric information through the lemons problem. Price discrimination, natural monopoly, two-part tariff, and perfect competition versus monopoly comparison complete the syllabus.
Sample Answer Preview - BECC 108 Intermediate Microeconomics-II Solved Question Paper
Here is how the Cournot equilibrium question should be structured. Given P = 20 - 2Q where Q = q1 + q2 and marginal cost equals 5, write the profit function for each firm. Firm 1 maximises profit by treating q2 as given. Setting the derivative of profit with respect to q1 equal to zero gives the reaction function of firm 1. Similarly derive firm 2's reaction function. Solving simultaneously gives q1 = q2 = 2.5, total output Q = 5, price P = 10, and each firm's profit equals 12.5. The BECC-108 solved question paper presents each derivation step clearly with Stackelberg also fully worked through part (b), showing how the leader's output rises and the follower's falls.
How to Write High-Scoring Answers in BECC-108 Question Paper
Here is the important part most students get wrong. For duopoly questions, show every algebraic step from the profit function through the derivative to the reaction function to the simultaneous solution. Do not skip steps because marks are awarded at each stage. For game theory questions, draw the payoff matrix first and then explain why the dominant strategy or Nash equilibrium is what it is. For diagram-based questions like Pigouvian tax or natural monopoly deadweight loss, describe your diagram clearly as you draw it. Most students notice that answers with labelled diagrams and stepwise algebra consistently earn more marks than answers with good theory but missing workings.
Who Should Use This BECC-108 Solved Question Paper December 2025?
This solved paper is designed for IGNOU BAECH students appearing in the December 2025 Term-End Examination for BECC-108. Students who find game theory and duopoly models difficult to present correctly in exam conditions will benefit most. Those who are comfortable with the concepts but unsure about how much algebra to show or how to structure a 20-mark answer will find the model answers directly applicable. The paper is also relevant for BAVMSME, BCOMF under FYUP, and BAFEC under FYUP students. Repeat candidates will see exactly where additional algebraic working or diagram labelling would have earned higher marks previously.
Why This is Better Than Free BECC-108 December 2025 Question Paper PDFs and Telegram Files
Free resources rarely provide complete Cournot derivations, properly labelled game theory payoff matrices, or Samuelson condition derivations for public goods. These are precisely the steps that earn marks in this paper. A Cournot answer with just the final output values and no reaction function derivation will lose most of its marks even if the numbers are correct. Unnati Education's solved paper shows the complete working for every question in the actual December 2025 paper, calibrated to the marks allocated for each part. That specificity is not something a generic free PDF from an unverified source can replicate.
Student Reviews - BECC-108 Solved Question Paper by Unnati Education
"The Cournot and Stackelberg derivations were laid out so clearly, step by step. The BECC-108 December 2025 solved paper showed exactly how the reaction curves lead to equilibrium and how Stackelberg changes everything." — Aditya from Hyderabad
"I was really confused about how to present the Prisoners' Dilemma and dominant strategy together in one answer. Unnati's solved paper showed the payoff matrix, identified the dominant strategies, and explained the Nash equilibrium in a clean sequence." — Ritika from Bhopal
"The public goods section explaining the Samuelson condition and what happens when it is violated was genuinely insightful. The answer was structured in a way I could follow and replicate without needing to reread the textbook." — Varun from Pune
How to Get the BECC-108 Solved Question Paper December 2025 - Step by Step
Click the contact or order button on this page and tell the Unnati Education team you need the BECC-108 December 2025 solved question paper. They will confirm your request and share payment details quickly. Once payment is confirmed, the complete solved paper covering all duopoly derivations, game theory solutions, welfare diagrams, and theory answers is delivered to you directly. The process is simple and the support team responds promptly throughout.
Frequently Asked Questions
What topics are covered in the BECC-108 Intermediate Microeconomics-II syllabus?
BECC-108 covers Cournot and Stackelberg duopoly equilibrium, Bertrand competition, Prisoners' Dilemma and dominant strategy, Nash equilibrium, extensive form games and backward induction, subgame perfect equilibrium, Pigouvian taxation for externalities, free rider problem, public goods optimal provision using the Samuelson condition, lemons problem and asymmetric information, general equilibrium efficiency conditions, price discrimination, natural monopoly deadweight loss, two-part tariff pricing, social welfare functions, isowelfare curves, contract curve, and welfare theorems.
What is the exam pattern for BECC-108 December 2025?
The paper carries 100 marks over three hours. Section A has four questions of 20 marks each and you must attempt any two. Section B has seven questions of 12 marks each and you must attempt any four. Section C has two compulsory questions of six marks each. Question 12 asks for short notes on any two of four topics and Question 13 asks for differences between any two of four pairs. The heavy mark allocation in Section A makes thorough preparation of duopoly, externalities, and market structure topics particularly important.
Is BECC-108 a difficult paper for BAECH students?
BECC-108 is considered one of the more demanding papers in the BAECH programme because it combines algebraic derivation with game theory logic and welfare economics theory. Students who are comfortable with optimisation and can set up and solve reaction functions will handle the duopoly questions well. Game theory questions need careful payoff analysis and clear explanation of equilibrium logic. With a solved paper that shows every algebraic step and diagram description, most students find they can prepare adequately within a focused revision period.
How can I access the IGNOU BECC-108 question paper and solved answers?
The complete BECC-108 December 2025 question paper is available on this page for direct viewing. For fully solved answers covering all numerical derivations, game theory solutions, welfare analysis, and diagram-based questions, you can get the BECC-108 solved question paper from Unnati Education through the contact option on this page. The solved paper is delivered promptly after confirmation and covers every question across all three sections in the appropriate depth for the marks allocated.
Does the solved paper include the extensive form game solution with backward induction?
Yes. The extensive form game in Question 8 is fully solved in Unnati Education's solved paper. The actions and strategies of both players are listed clearly for part (a). Backward induction is applied step by step starting from the terminal nodes to find the subgame perfect equilibrium for part (b). The normal form representation showing all strategy combinations and payoffs is constructed for part (c). This three-part question is worth 12 marks and every part is covered with the working and explanation needed to earn full credit.
About Unnati Education - IGNOU Study Material Experts
Unnati Education has supported IGNOU students across BAECH and several other programmes with accurately prepared solved papers and study material. BECC-108 is one of the papers that most benefits from a high-quality solved resource because the questions combine algebra, game theory logic, and welfare analysis in ways that textbooks alone do not teach you how to present in an exam. Our content writers are academically qualified and familiar with IGNOU's examination structure and marking patterns. Every solved paper is prepared from the actual session's question paper, checked for accuracy, and formatted to match what IGNOU examiners expect.
Explore More IGNOU BECC-108 Solved Papers and Study Material
Unnati Education offers solved papers from previous BECC-108 examination sessions for practice across varied question patterns. Assignment solutions for the current BAECH academic year are also available. Topic-wise notes on game theory, duopoly models, and welfare economics are prepared for students who want focused revision on specific areas. Related solved papers for BECC-101, BECC-102, BECC-104, BECC-106, and other BAECH subjects are available with the same standard of analytical depth and IGNOU alignment throughout.
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The question paper is right here. Now get the solutions that help you master the derivations, game trees, and welfare analysis this paper demands. The BECC-108 December 2025 solved paper from Unnati Education covers every section with complete numerical working, game theory payoff analysis, and IGNOU-appropriate answer formats. Stop preparing from incomplete resources. Get the solved paper today and walk into your December 2025 examination with real confidence.