BECC 108 Intermediate Microeconomics-II Solved Assignment is prepared strictly as per the latest IGNOU 2025–26 booklet for BA Economics (Honours). This solution covers monopoly, Cournot and Stackelberg models, Nash equilibrium, signalling, welfare economics, Coase theorem, Pigovian tax and numerical problem solving in a clear and practical manner. Every answer is structured properly with explanation and calculation steps so you can confidently write in your own words and score well. Content is based on the official assignment document and follows the exact question format.
BECC 108 Assignment Questions (As Per Official Booklet)
Course Code: BECC-108
Assignment Code: Asst/TMA/2025-26
Total Marks: 100 :
Assignment One – Descriptive Category (2 × 20 = 40)
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(a) Consider a market for cars that initially has only one firm operating as a monopolist. The firm has a linear cost function given by C(q) = 2q, and the market demand is represented by the inverse demand function P(Q) = 9 − Q, where Q denotes the total quantity sold in the market.
(i) Determine the price that the monopolist will charge and the quantity of cars it will sell. Based on this output and cost structure, calculate the profit earned by the monopolist.
(ii) Now suppose a second firm, with an identical cost function, enters the market, forming a Cournot duopoly. Determine the Cournot equilibrium output for each firm.
(iii) Analyze the Stackelberg duopoly scenario, where the first firm acts as the leader and the second as the follower. Find the Stackelberg equilibrium output for each firm.
(iv) Calculate and compare the profits earned by each firm under both the Cournot and Stackelberg models.
(v) Evaluate which of the three market structures—monopoly, Cournot duopoly, or Stackelberg duopoly—would be preferred by consumers, and explain your reasoning.
(b) “Monopolistic competition leads to excess capacity.” Discuss with the help of a diagram. -
(a) Explain the concept of sub-game perfect Nash equilibrium (SPNE). How is it different from a regular Nash equilibrium?
(b) Two neighbors in an Indian residential colony are planning to build a shared community water tank, which will cost ₹20,000. Both neighbors value the construction of the tank at ₹30,000 each. They must decide by submitting a note for or against construction. If both agree, cost is split equally. If only one agrees, that neighbor bears full cost. If neither agrees, tank will not be built.
Represent this situation as a game in normal form and find all Nash equilibria, including both pure and mixed strategies.
Assignment Two – Middle Category (3 × 10 = 30)
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(a) Explain with examples how signalling works in the labour market. What kind of signals do workers send?
(b) A used car market has 50% lemons and 50% good cars. Buyers cannot distinguish. Sellers of lemons are willing to sell at $2,000 and good cars at $5,000. Buyers are willing to pay $3,000 for lemons and $6,000 for good cars.
(a) What price will emerge if buyers offer a single price?
(b) What kind of cars will dominate the market? Why? -
(a) What is the Rawlsian (minimax) social welfare function? How does it differ from utilitarian welfare functions?
(b) What is a Transformation Curve? How does it represent trade-offs between two goods? -
(a) State the Coase Theorem. How can private bargaining solve externalities? Under what conditions will it work effectively?
(b) A firm produces 100 units. MPC = ₹20, MEC = ₹10, MB = ₹30.
i) What is the socially optimal output?
ii) Calculate the Pigovian tax.
Assignment Three – Short Category (5 × 6 = 30)
- Why do firms in monopolistic competition earn only normal profits in the long run?
- Explain the concept of the Utility Possibility Curve (UPC).
- What is non-price competition?
- Discuss any one real-world application of game theory in economics or business.
- What is a missing market?
BECC 108 Assignments Details
- Programme: BA Economics (Honours)
- Course Code: BECC-108
- Total Marks: 100
- Session: July 2025 and January 2026
- Medium: English
- Type: Tutor Marked Assignment (TMA)
BECC 108 Assignment Submission End Date – Upto:
For the students enrolled in July 2025: 30th April 2026 – Submit to the Coordinator of the Learner Support Centre.
For the students enrolled in January 2026: 30th September 2026 – Submit to the Coordinator of the Learner Support Centre.
Why Choose Our BECC 108 IGNOU Solved Assignments?
- Complete solutions strictly based on latest 2025-26 assignment booklet with exact question coverage.
- Step-by-step numerical solutions for monopoly, Cournot and Stackelberg models.
- Clear explanation of SPNE, signalling, welfare and externalities in simple language.
- Well-structured answers with diagrams explanation guidance where required.
- Proper word limit maintained for descriptive, middle and short category answers.
- Designed to improve conceptual clarity so you can write confidently in exams.
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FAQs
1. Is BECC 108 difficult?
BECC 108 can feel challenging because it includes advanced microeconomic models like Cournot, Stackelberg and game theory. However, when concepts are broken down step-by-step and numericals are solved clearly, the subject becomes manageable. Regular practice and structured writing make a big difference.
2. Are numerical questions solved properly?
Yes, all numerical parts such as monopoly pricing, Cournot equilibrium and Pigovian tax are solved step-by-step with explanation. The calculation method is clearly shown so you understand the logic instead of just memorizing answers.
3. Is this based on latest 2025-26 assignment?
Yes, the solutions strictly follow the official BECC-108 Intermediate Microeconomics-II assignment for July 2025 and January 2026 cycles .
4. Can I submit printed answers?
IGNOU generally expects handwritten assignments. You should use this PDF as a reference and write answers neatly in your own handwriting to avoid rejection and ensure proper evaluation.
5. Will this help in Term-End Exam?
Yes. Since assignments cover core models and applied questions, preparing from these structured answers strengthens your understanding and helps you write better answers in the final examination.
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