BECC 108 key facts: June 2026
- Course code: BECC 108 (printed BECC-108)
- Subject: Intermediate Microeconomics-II
- Programme: Bachelor of Arts (Honours) Economics (BAECH), Semester IV core course
- Credits: 6 (three tutor-marked assignments)
- Blocks and units: 4 blocks, 8 units
- Maximum marks: 100 (term-end exam 70 per cent, assignments 30 per cent)
- Duration: 3 hours
- Questions in the June 2026 paper: 12 (Section A: 4, Section B: 7, Section C: 1 short-notes question with 3 options); you attempt 8
- Expected length: about 500 words for a 20-mark answer, 250 to 300 for a 12-mark answer, 150 per note
- Samples shown on this page: 2 (Q1 and Q8); all 12 answers in the paid file
BECC 108 Solved Question Paper for the June 2026 term-end exam takes the official IGNOU paper for Intermediate Microeconomics-II and answers all 12 questions the way BAECH examiners expect. Two complete answers are open below, including the deadweight loss numerical, so you can check the quality before you message us.
1. What the June 2026 Solved Paper Covers
BECC 108 Intermediate Microeconomics-II is the six-credit Semester IV core course of IGNOU's BA (Honours) Economics, and this solved paper answers its June 2026 term-end exam in full.
The June 2026 paper is heavy on market structure. Section A asks about the contract curve, perfect competition against monopoly, Cournot and the Bertrand paradox, and public goods. Section B moves from the transformation curve and iso-welfare curves to price discrimination, a deadweight loss numerical, Lerner's index and a two-by-two game.
Public goods show up twice in this one paper, as Question 4 in Section A and as the Samuelson-Musgrave question in Section B. Oligopoly is tested three ways: residual demand under Cournot, the Bertrand paradox, and Bertrand equilibrium through reaction curves. Section C closes with short notes on excess capacity, the principal-agent problem and the Coase theorem.
Our file treats each of these as an exam answer, not a textbook chapter. Answers follow the marks printed against each part, numericals show every line of working, and each diagram comes with a labelled drawing guide you can reproduce in the exam hall within a few minutes.
2. Two Answers Solved in Full, Ten Held Back
Question 1 (both parts, 20 marks) and Question 8 (both parts, 12 marks) are solved in full below.
We chose one theory question and one numerical so you can see both styles. The question text is copied exactly as printed, with IGNOU's own numbering and marks.
The contract curve, and general equilibrium of production and exchange
Question 1(i): What is the contract curve? How is it the locus of efficient outcomes? (10)
Question 1(ii): Explain general equilibrium of production and exchange under perfect competition. (10)
Part (i): the contract curve
Meaning. The contract curve is the locus of all points in an Edgeworth box where the indifference curves of the two consumers are tangent to each other. At each such point the two consumers have the same marginal rate of substitution between the two goods, so no further mutually beneficial trade is possible.
The Edgeworth box. Take two consumers, A and B, and two goods, X and Y, with fixed total quantities. The width of the box measures total X and the height measures total Y. A's origin OA is the bottom-left corner and B's origin OB is the top-right corner, so every point inside the box is one complete division of both goods.
Why points off the curve are inefficient. Suppose the starting allocation is point E, where A's indifference curve cuts B's indifference curve. The two curves enclose a lens-shaped area. Any reallocation into that lens puts both consumers on higher indifference curves, so E allows a Pareto improvement and cannot be efficient.
Why points on the curve are efficient. Trade inside the lens continues until the two indifference curves just touch, say at point P. Here the slopes are equal: MRSXYA = MRSXYB. Any move away from P lowers the utility of at least one consumer, so P is Pareto efficient.
Locus of efficient outcomes. Joining every such tangency point from OA to OB traces the contract curve. Every point on it satisfies the equal-MRS condition and is Pareto efficient; every point off it leaves a lens of mutual gain.
Points worth adding for full marks.
- Efficiency is not equity. OA and OB lie on the contract curve even though one consumer holds everything there.
- From a given endowment, voluntary trade ends on the stretch of the contract curve inside the lens, often called the core of the exchange economy.
- Plotting the utility pairs along the contract curve gives the utility possibility curve, which links this question to welfare economics.
- The same logic applies to production: where the isoquants for X and Y are tangent, MRTSLK is equal in both industries, giving the production contract curve.
Diagram to draw: an Edgeworth box with OA at the bottom-left and OB at the top-right, the width labelled total X and the height total Y. Show one pair of crossing indifference curves through a point E, with the lens between them shaded. Mark three tangency points and join them in a curve running from OA to OB, labelled CC, with the condition MRSA = MRSB written beside it.
Part (ii): general equilibrium of production and exchange
Meaning. General equilibrium of production and exchange is a state in which all goods markets and factor markets clear at the same time, and no consumer, firm or factor owner wants to change what they are doing. Under perfect competition this state also satisfies every condition for Pareto efficiency.
Assumptions of the 2×2×2 model. There are two consumers (A and B), two goods (X and Y) and two factors (labour L and capital K) in fixed supply. All markets are perfectly competitive, there are no externalities or public goods, information is complete, consumers maximise utility and firms maximise profit.
- Efficiency in production. Each firm minimises cost by hiring factors until MRTSLK equals the factor price ratio w/r. Because both industries face the same w and r, MRTSLKX = MRTSLKY. The economy is on the production contract curve and therefore on its transformation curve.
- Efficiency in exchange. Each consumer maximises utility where MRSXY equals the price ratio PX/PY. Since both face the same prices, MRSXYA = MRSXYB, which places the final allocation on the consumption contract curve.
- Efficiency in product mix. The slope of the transformation curve, MRTXY, equals MCX/MCY. Competitive firms produce where price equals marginal cost, so MCX/MCY = PX/PY. Together this gives MRTXY = PX/PY = MRSXYA = MRSXYB.
How prices bring this about. If X is in excess demand, PX rises, firms move resources towards X and consumers substitute away from it until the market clears. By Walras' law, once all but one market clears the last one clears too, so only relative prices are determined.
Diagram to draw: a concave transformation curve with good X on the horizontal axis and good Y on the vertical axis. Mark a point Q on it. Using the origin and Q as opposite corners, draw an Edgeworth box for consumption inside. Inside the box, mark the point where two tangent indifference curves have a common slope parallel to the tangent to the transformation curve at Q.
Conclusion. This is the first fundamental theorem of welfare economics: a perfectly competitive general equilibrium is Pareto optimal. The second theorem adds that any point on the contract curve can be reached as a competitive equilibrium after a suitable lump-sum redistribution of endowments.
A deadweight loss numerical, and the two-part tariff
Question 8(i): The demand curve of a monopolistically competitive firm is as follows: (8)
p = 185 − 15q
where p and q are price and output respectively. Assuming marginal cost is constant and given by MC = 5, find the deadweight loss of the monopolistically competitive firm.
Question 8(ii): Define the two-part tariff function. (4)
Part (i): the deadweight loss
Approach. A monopolistically competitive firm faces a downward-sloping demand curve because its product is differentiated. It sets output where marginal revenue equals marginal cost, while the efficient output is where price equals marginal cost. The deadweight loss is the triangle of surplus lost between these two outputs.
Step 1: marginal revenue. Total revenue TR = p × q = 185q − 15q2. Differentiating with respect to q:
MR = 185 − 30q
Step 2: the firm's equilibrium. Setting MR = MC: 185 − 30q = 5, so 30q = 180 and q = 6. The price comes from the demand curve: p = 185 − 15(6) = 95.
Step 3: the efficient output. Setting p = MC: 185 − 15q = 5, so 15q = 180 and q = 12. At this output, price would equal the marginal cost of 5.
Step 4: deadweight loss.
DWL = ½ × (95 − 5) × (12 − 6) = ½ × 90 × 6 = 270
Check using surplus. At q = 6, consumer surplus is ½ × 6 × (185 − 95) = 270 and producer surplus is (95 − 5) × 6 = 540, a total of 810. At q = 12, total surplus is ½ × 12 × (185 − 5) = 1080. The difference, 1080 − 810, is 270, which confirms the answer.
Interpretation. The firm produces half the efficient quantity and charges 95 against a marginal cost of 5. The 270 units of surplus are lost to society rather than transferred to the firm. This gap between price and marginal cost is the efficiency cost of product differentiation in monopolistic competition.
Answer. Equilibrium output = 6, price = 95, efficient output = 12, deadweight loss = 270.
Part (ii): the two-part tariff
Definition. A two-part tariff is a pricing method in which the buyer pays a fixed access fee F for the right to buy, plus a per-unit price p for each unit bought. The tariff function, or total outlay, is:
T(q) = F + p·q for q > 0, and zero if nothing is bought
Key features. The average price per unit, F/q + p, falls as the buyer purchases more, so heavy users pay less per unit than light users. Familiar examples are an amusement park entry fee plus a charge per ride, a club membership plus a court fee, and a fixed monthly electricity charge plus a rate per unit.
Pricing rule. When all buyers are identical, the firm's best tariff sets p = MC and F equal to the consumer surplus at that price. Using the demand curve in part (i), p = 5 and F = ½ × 12 × (185 − 5) = 1080. The firm then sells the efficient output of 12 and the deadweight loss of 270 disappears.
3. Questions Answered Only in the Full File
The 10 questions below are listed exactly as printed. Their answers are not on this page.
Section A (any two, 20 marks each)
Question 2: (i) Differentiate between perfectly competitive market structure and monopoly. (10) (ii) Explicate the concept of natural monopoly. (10)
Question 3: (i) Discuss the equilibrium under the Cournot model using residual demand curves. (10) (ii) Define the concept of the Bertrand paradox. (10)
Question 4: Define public goods. Why do markets fail in the presence of a public good? (10 + 10)
Section B (any four, 12 marks each)
Question 5: What is the transformation curve? Write the important features of the transformation curve. (12)
Question 6: Define the iso-welfare curve. Explain how a society attains maximum social welfare. (12)
Question 7: Discuss various forms of price discrimination under a monopoly. (12)
Question 9: Explain the following concepts. (6 + 6)
(a) Lerner's index for oligopoly
(b) Bertrand equilibrium using reaction curvesQuestion 11: Explain the Samuelson-Musgrave solution to the optimal allocation of a public good. (12)
Question 10 (Section B, 4 + 4 + 4): The following is the payoff matrix in strategic form in which two players have two strategies each.
(a) Write the game in extensive form.
(b) Find the Nash equilibrium of the game.
(c) Find the dominant strategies of both players.
| Player 1 / Player 2 | Left | Right |
|---|---|---|
| Top | (7, 3) | (5, 3) |
| Bottom | (7, 0) | (3, −1) |
Section C (any two, 6 marks each)
Question 12: Write short notes on any two of the following. (6 + 6)
(i) Excess capacity
(ii) Principal-agent problem
(iii) Coase theorem
4. Blocks and Units
BECC 108 is organised into four blocks and eight units, two units per block.
The last column of the table shows which June 2026 question draws on each unit, so you can see how evenly the paper spreads across the course.
| Block | Unit | Topics specific to this unit | June 2026 questions |
|---|---|---|---|
| Block 1: General Equilibrium | Unit 1: General Equilibrium with Production | Edgeworth box in exchange and production; production contract curve; deriving the transformation curve | Q1 (Sample 1), Q5 |
| Block 1: General Equilibrium | Unit 2: Overall Efficiency and Welfare Economics | Pareto condition for product mix; utility possibility frontier; social welfare functions and iso-welfare curves | Q1(ii), Q6 |
| Block 2: Imperfect Competition-I | Unit 3: Monopoly | Monopoly against perfect competition; natural monopoly; price discrimination and two-part tariff | Q2, Q7, Q8(ii) |
| Block 2: Imperfect Competition-I | Unit 4: Monopolistic Competition | Product differentiation and the firm's demand curve; deadweight loss; excess capacity in the long run | Q8(i) (Sample 2), Q12(i) |
| Block 3: Imperfect Competition-II | Unit 5: Oligopoly | Cournot with residual demand; Bertrand paradox and reaction curves; Lerner's index of market power | Q3, Q9 |
| Block 3: Imperfect Competition-II | Unit 6: Game Theory and its Applications | Strategic and extensive form games; Nash equilibrium; dominant strategies | Q10 |
| Block 4: Market Failure | Unit 7: Externalities and Public Goods | Non-rival and non-excludable goods; optimal provision of public goods; Coase theorem on externalities | Q4, Q11, Q12(iii) |
| Block 4: Market Failure | Unit 8: Asymmetric Information | Adverse selection and the market for lemons; signalling and screening; principal-agent problem and moral hazard | Q12(ii) |
If you are still reading the blocks, our BECC 108 Study Material follows the same four-block order, so your notes and this solved paper line up unit for unit.
5. How the Paper Is Set and Marked
The paper is a three-hour, 100-mark paper in three sections: two of four long questions, four of seven medium questions and two of three short notes.
| Section | Printed | Attempt | Marks each | Section total | June 2026 topics |
|---|---|---|---|---|---|
| A | 4 questions (Q1 to Q4) | Any 2 | 20 | 40 | Contract curve, monopoly and natural monopoly, Cournot and Bertrand paradox, public goods |
| B | 7 questions (Q5 to Q11) | Any 4 | 12 | 48 | Transformation curve, iso-welfare, price discrimination, deadweight loss numerical, Lerner's index, payoff-matrix game, Samuelson-Musgrave |
| C | 1 question (Q12) with 3 options | Any 2 notes | 6 | 12 | Excess capacity, principal-agent problem, Coase theorem |
| Total | 12 questions | 8 answers | Mixed | 100 | 3 hours |
Section C changes shape between sessions. In June 2024 it had two compulsory questions, one on short notes and one on differences, each worth 6 marks. In June 2026 it is a single question asking for short notes on any two of three topics at 6 marks each, so the section total stays at 12.
June 2024 put a deadweight loss numerical and a Cournot numerical in Section A, while June 2026 keeps Section A fully theoretical and moves the numerical and the game into Section B. To compare papers from other courses, our BAECH Question Paper collection shows how the other Semester IV papers are laid out.
6. Topics That Keep Returning
Nine BECC 108 topics appeared in every one of the three official papers we checked: December 2022, June 2024 and June 2026.
We counted only papers from IGNOU's own question paper service plus the official June 2026 paper. December 2021, June 2022, June 2023, December 2023, December 2024, June 2025 and December 2025 were not available to us from the official site, so this table does not claim a five-year view.
| Topic | Where it appeared | Papers (of 3) | June 2026 question |
|---|---|---|---|
| Contract curve, Edgeworth box and general equilibrium | Dec 22 Q2; Jun 24 Q7, Q12(a); Jun 26 Q1 | 3 | Q1 (Sample 1) |
| Deadweight loss numerical | Dec 22 Q1; Jun 24 Q1; Jun 26 Q8(i) | 3 | Q8(i) (Sample 2) |
| Public goods and the Samuelson-Musgrave solution | Dec 22 Q9; Jun 24 Q4; Jun 26 Q4, Q11 | 3 | Q4, Q11 |
| Social welfare function, value judgements and iso-welfare curves | Dec 22 Q5, Q6; Jun 24 Q8, Q11(c); Jun 26 Q6 | 3 | Q6 |
| Excess capacity in monopolistic competition | Dec 22 Q8(b); Jun 24 Q9; Jun 26 Q12(i) | 3 | Q12(i) |
| Cournot duopoly | Dec 22 Q13(c); Jun 24 Q3; Jun 26 Q3(i) | 3 | Q3(i) |
| Nash equilibrium and extensive form games | Dec 22 Q3; Jun 24 Q10; Jun 26 Q10 | 3 | Q10 |
| Perfect competition against monopoly | Dec 22 Q13(b); Jun 24 Q6, Q12(b); Jun 26 Q2(i) | 3 | Q2(i) |
| Asymmetric information and the principal-agent problem | Dec 22 Q4; Jun 24 Q5, Q12(c); Jun 26 Q12(ii) | 3 | Q12(ii) |
| Bertrand model and Bertrand paradox | Dec 22 Q10; Jun 26 Q3(ii), Q9(b) | 2 | Q3(ii), Q9(b) |
| Price discrimination | Dec 22 Q7; Jun 26 Q7 | 2 | Q7 |
| Two-part tariff | Dec 22 Q12(a); Jun 26 Q8(ii) | 2 | Q8(ii) (Sample 2) |
| Natural monopoly | Jun 24 Q11(b); Jun 26 Q2(ii) | 2 | Q2(ii) |
| Coase theorem | Dec 22 Q12(d); Jun 26 Q12(iii) | 2 | Q12(iii) |
| Transformation curve or production possibility frontier | Dec 22 Q11; Jun 26 Q5 | 2 | Q5 |
For likely questions in many more courses, see our IGNOU Solved Guess Paper page, which uses the same official-paper method.
7. How Our Answers Are Written and Checked
Every BECC 108 answer in the file is written against the eGyanKosh units and earlier official papers.
We started from the official June 2026 paper, mapped each question to its unit, and set answer length by the marks printed: about 500 words for a 20-mark Section A question, 250 to 300 words for a 12-mark Section B question and around 150 words for each 6-mark note.
Every numerical is solved twice by different methods, the way Question 8 above is checked by both the triangle formula and the surplus totals. Diagrams are described with axis labels and point names so you can draw them without a textbook beside you.
Because the answers were written after studying older papers, the file also flags where a question has repeated. You can compare those sessions yourself on our IGNOU Previous Year Question Paper page.
8. Solved File Index: All 12 Questions Mapped to Units
The file contains 12 solved questions; 2 are shown on this page and 10 are in the full file only.
BECC 108 is a theory course with no practical or record work, so instead of a practical file index this table maps every question to its course unit.
| Question | Topic tested | Section and marks | Unit | Where the answer is |
|---|---|---|---|---|
| Q1 | Contract curve; general equilibrium of production and exchange | A, 10 + 10 | Units 1 and 2 | Sample 1 above |
| Q2 | Perfect competition against monopoly; natural monopoly | A, 10 + 10 | Unit 3 | Full file |
| Q3 | Cournot with residual demand; Bertrand paradox | A, 10 + 10 | Unit 5 | Full file |
| Q4 | Public goods and market failure | A, 10 + 10 | Unit 7 | Full file |
| Q5 | Transformation curve and its features | B, 12 | Unit 1 | Full file |
| Q6 | Iso-welfare curve and maximum social welfare | B, 12 | Unit 2 | Full file |
| Q7 | Forms of price discrimination | B, 12 | Unit 3 | Full file |
| Q8 | Deadweight loss numerical; two-part tariff | B, 8 + 4 | Units 4 and 3 | Sample 2 above |
| Q9 | Lerner's index for oligopoly; Bertrand reaction curves | B, 6 + 6 | Unit 5 | Full file |
| Q10 | Payoff matrix: extensive form, Nash equilibrium, dominant strategies | B, 4 + 4 + 4 | Unit 6 | Full file |
| Q11 | Samuelson-Musgrave allocation of a public good | B, 12 | Unit 7 | Full file |
| Q12 | Short notes: excess capacity, principal-agent problem, Coase theorem | C, 6 + 6 | Units 4, 8 and 7 | Full file |
9. Programmes That Include BECC 108
BECC 108 Intermediate Microeconomics-II is a core course of IGNOU's BA (Honours) Economics (BAECH), taught in Semester IV.
In the IGNOU Bachelor of Arts (Honours) Economics programme it sits beside BECC 109 Intermediate Macroeconomics-II and BECC 110 Introductory Econometrics, and it builds directly on BECC 105 Intermediate Microeconomics-I from an earlier semester.
BA General students who take Economics study different codes, such as BECC 131 and BECC 132, so their papers will not match this one. The official course page with all four blocks, in English and Hindi medium, is on eGyanKosh.
10. How to Get the Full Solved Question Paper
Send "BECC 108 June 2026" to WhatsApp 9899436384 and our team will share the complete file with all 12 answers.
The full file covers the 2 answers you have read here and the 10 questions listed above as text only: natural monopoly, Cournot and Bertrand, public goods, the transformation curve, iso-welfare curves, price discrimination, Lerner's index, the payoff-matrix game, Samuelson-Musgrave and all three short notes.
Our team confirms the details on WhatsApp and then shares the file. If you also need other Semester IV papers such as BECC 109 or BECC 110, add them to the same message.
11. BECC 108 Intermediate Microeconomics-II FAQs
These are the questions students ask us most before ordering the solved paper.
What does the June 2026 solved file contain?
The full file answers all 12 questions of the June 2026 BECC 108 paper, from the contract curve in Question 1 to the short notes in Question 12. Two answers are shown on this page and the other 10 are only in the file. Numericals are worked step by step, and every diagram is described with labelled axes so you can redraw it in the exam hall.
How do I get the full answers on WhatsApp?
Send a WhatsApp message to 9899436384 with the words "BECC 108 June 2026". Our team replies with the file details and shares the complete solved paper once you confirm. The file holds all 12 answers: the 2 you can read here plus the 10 questions listed on this page as text only. If you also need BECC 109 or BECC 110, mention them in the same message.
Which BECC 108 topics repeat most in IGNOU papers?
Across the official December 2022, June 2024 and June 2026 papers, nine topics appeared in all three: the contract curve, deadweight loss numericals, public goods, social welfare functions, excess capacity, Cournot duopoly, Nash equilibrium games, perfect competition against monopoly, and asymmetric information. Bertrand, price discrimination, two-part tariff, natural monopoly, the Coase theorem and the transformation curve appeared in two of the three.
How many blocks and units does BECC 108 have?
BECC 108 has four blocks and eight units on eGyanKosh: General Equilibrium (Units 1 and 2), Imperfect Competition-I (Units 3 and 4), Imperfect Competition-II (Units 5 and 6) and Market Failure (Units 7 and 8). It is a six-credit Semester IV core course of BAECH, so you complete three tutor-marked assignments for it before you sit the term-end exam.
What is the BECC 108 question paper pattern?
The paper runs for three hours and carries 100 marks. In June 2026, Section A offered four 20-mark questions with two to attempt, Section B offered seven 12-mark questions with four to attempt, and Section C asked for short notes on any two of three topics at 6 marks each. That adds up to 40 plus 48 plus 12 marks.
Are the sample answers written to IGNOU length?
Yes. The Question 1 answer covers both 10-mark parts with definitions, the three Pareto conditions and a diagram guide, which is the depth a 20-mark Section A answer needs. The Question 8 answer shows every step of the deadweight loss calculation, cross-checks the result with surplus figures, and then defines the two-part tariff with an example tied to the same demand curve.
Which programme studies BECC 108?
BECC 108 is a Semester IV core course of IGNOU's Bachelor of Arts (Honours) Economics, studied alongside BECC 109 Intermediate Macroeconomics-II and BECC 110 Introductory Econometrics. It follows BECC 105 Intermediate Microeconomics-I. BA General students who take Economics study different codes, BECC 131 and BECC 132, so their papers do not match this one.
Can I use the June 2026 solved paper for the December 2026 exam?
Yes, and that is how most students use it. The June 2026 paper repeated many topics from earlier sessions, so working through all 12 answers covers a large share of what the December 2026 paper is likely to test. Pair it with your block notes and assignments, since the term-end exam carries 70 per cent weightage in your final course result.
12. Who Wrote and Checked the BECC 108 Answers
The BECC 108 answers were written by Prateek Talwar and reviewed by Sheetal Kirola.
Prateek Talwar, founder of Unnati Educations, leads the IGNOU solved-paper series and prepares answers from the course units and the official term-end paper. Sheetal Kirola, Academic Head (M.Ed.), re-solves every numerical and checks each diagram description before release.