BECC 132 key facts: June 2026
- Course code: BECC-132
- Subject: Principles of Microeconomics-II
- Programme: Bachelor of Arts (General), BAG; also offered in BAM
- Credits: 6 (three tutor-marked assignments)
- Blocks and units: 4 blocks, 11 units
- Maximum marks: 100 (term-end exam 70 per cent, assignments 30 per cent)
- Duration: 3 hours
- Questions in the June 2026 paper: 19 answerable items (Section A parts and Section C notes counted one by one); you attempt 9
- Samples shown on this page: 2 (Q1(b) and Q6); all 19 answers in the paid file
BECC 132 Solved Question Paper for June 2026 gives you the official IGNOU Principles of Microeconomics-II paper with all 19 questions answered by our economics team. Read 2 answers in full below, see the other 17 questions exactly as printed, and check which topics keep returning before your next exam.
1. What the June 2026 Solved Paper Includes
BECC 132 Principles of Microeconomics-II is a 6-credit core economics course in IGNOU's Bachelor of Arts (General) that follows BECC 131 and studies market structures, factor markets, welfare and international trade. The June 2026 paper tests all four of those areas in one sitting.
The full file answers every question in the paper, 19 in all. That includes the Cournot numerical with three firms, the backward-bending labour supply diagram, rent and the elasticity of land supply, public goods with asymmetric information, and the impact of the WTO on the Indian economy.
Each answer opens with a clear definition, builds the argument in short steps and closes with a conclusion an examiner can mark quickly. Where the paper asks for a diagram or a calculation, the answer gives one, because those are the marks students most often lose in this course.
2. Two Answers Solved in Full, Seventeen Held Back
Below are 2 complete answers from the paid file, Q1(b) from Section A and Q6 from Section B. Both were chosen because they test calculation and derivation, the two skills that separate a pass from a high score in Microeconomics-II.
Cournot equilibrium with three firms
Question 1(b): Assume three firms face identical marginal cost of 20 with fixed cost of 10. They face a market demand curve of P = 200 − 2Q. Find the Cournot equilibrium, price and quantity. (10)
Approach. In the Cournot model each firm chooses its own output and treats the outputs of its rivals as fixed. Here three identical firms share one market, so total output is Q = q1 + q2 + q3 and the inverse demand curve is P = 200 − 2Q. Each firm has MC = 20 and a fixed cost of 10.
Step 1: profit of firm 1.
π1 = P × q1 − 20q1 − 10 = [200 − 2(q1 + q2 + q3)]q1 − 20q1 − 10
Step 2: first-order condition. Setting ∂π1/∂q1 = 0 gives 200 − 4q1 − 2q2 − 2q3 − 20 = 0, so 4q1 = 180 − 2(q2 + q3). The reaction function of firm 1 is:
q1 = 45 − 0.5(q2 + q3)
Firms 2 and 3 have the same reaction functions with the subscripts swapped.
Step 3: symmetric equilibrium. Because costs are identical, q1 = q2 = q3 = q. Substituting, q = 45 − 0.5(2q) = 45 − q, so 2q = 45 and q = 22.5 units for each firm.
Step 4: market quantity and price. Q = 3 × 22.5 = 67.5 units. P = 200 − 2(67.5) = 65.
Step 5: profit. Each firm earns total revenue of 65 × 22.5 = 1,462.5 against total cost of (20 × 22.5) + 10 = 460, so profit is 1,002.5 per firm and 3,007.5 for the industry. The fixed cost of 10 lowers profit but does not change output, because it drops out of the marginal condition.
| Market form | Rule used | Market output | Price |
|---|---|---|---|
| Monopoly (one firm) | MR = 200 − 4Q = 20 | 45 | 110 |
| Cournot with three firms | Reaction functions solved together | 67.5 | 65 |
| Perfect competition | P = MC = 20 | 90 | 20 |
Conclusion. The Cournot equilibrium is 22.5 units per firm, a market quantity of 67.5 and a price of 65. This matches the general result:
Q = [n/(n + 1)] × (a − c)/b = (3/4) × (180/2) = 67.5
Output lies between monopoly and competition, and as more firms enter it moves closer to the competitive level of 90.
Average revenue, marginal revenue and price elasticity under monopoly
Question 6: Explain the relationship between average revenue, marginal revenue and price elasticity under monopoly. (12)
Meaning. Average revenue (AR) is revenue per unit sold, so AR = TR/Q = P. A monopolist faces the downward-sloping market demand curve, which means its AR curve is the demand curve itself. To sell one more unit it must cut the price on all units, so marginal revenue (MR) is always below AR.
Deriving the relationship. TR = P × Q, so MR = dTR/dQ = P + Q(dP/dQ). Taking P out as a common factor, MR = P[1 + (Q/P)(dP/dQ)]. Price elasticity of demand is e = −(dQ/dP)(P/Q), so (Q/P)(dP/dQ) = −1/e. This gives the key formula:
MR = AR(1 − 1/e), or AR = MR × e/(e − 1)
Three cases follow. When e is greater than 1, MR is positive and total revenue rises as output rises. When e equals 1, MR is zero and total revenue is at its maximum. When e is less than 1, MR is negative, so selling more actually reduces total revenue.
| Output Q | AR = P | Elasticity e | MR from formula | MR = 100 − 2Q |
|---|---|---|---|---|
| 25 | 75 | 3 (elastic) | 75(1 − 1/3) = 50 | 50 |
| 50 | 50 | 1 (unit elastic) | 50(1 − 1) = 0 | 0 |
| 75 | 25 | 1/3 (inelastic) | 25(1 − 3) = −50 | −50 |
Why it matters for monopoly pricing. A monopolist maximises profit where MR = MC. Since MC is positive, MR must be positive at that point, so e must be greater than 1. A profit-maximising monopolist therefore never produces on the inelastic part of its demand curve.
The same formula gives the Lerner index of monopoly power. Putting MR = MC into MR = P(1 − 1/e) gives (P − MC)/P = 1/e. The less elastic the demand, the larger the gap between price and marginal cost, which is why monopolists of goods with few close substitutes can charge large mark-ups.
Diagram to draw: a straight-line AR (demand) curve sloping down from the price intercept, with the MR curve starting at the same price intercept and falling twice as steeply, so it cuts the quantity axis halfway along the AR curve. Mark that halfway point as e = 1, label the stretch to its left as the elastic range and to its right as the inelastic range, and show the TR curve below peaking directly under it.
Conclusion. Under monopoly AR, MR and elasticity are tied together by MR = AR(1 − 1/e). The formula explains why MR lies below AR, why total revenue peaks at unit elasticity, and why a monopolist always operates where demand is elastic.
3. Questions Answered Only in the Full File
These 17 questions are reproduced exactly as printed in the June 2026 paper. Their answers, including every diagram and the remaining calculations, are in the paid file only.
Section A (any two questions, 10 + 10 marks each)
Question 1(a): How is price determination under monopoly different from perfect competition? (10)
Question 2(a): Distinguish the demand for labour in perfectly competitive and imperfectly competitive markets. (10)
Question 2(b): Explain diagrammatically why the supply curve of labour is backward bending. (10)
Question 3(a): Differentiate between accounting and economic profits. How do profits behave as rewards for innovation? (10)
Question 3(b): Explain how rent can differ depending on the elasticity of supply of land. (10)
Question 4(a): What are public goods? Explain what problems asymmetric information leads to. (10)
Question 4(b): Explain the comparative advantage theory of trade. How is it an improvement over the absolute advantage theory? (10)
Section B (any four, 12 marks each)
Question 5: What is the shut-down point? Show using a diagram. (12)
Question 7: Differentiate between cooperative and non-cooperative models of oligopoly. (12)
Question 8: What is an economically efficient allocation? How does an economically efficient allocation differ from an inefficient allocation? (12)
Question 9: What is the WTO? Explain the impacts of the WTO on the Indian economy. (12)
Question 10: Explain the deadweight loss under monopoly. (12)
Section C (any three, 4 marks each)
Question 11: Write short notes on any three of the following.
(i) Third-degree price discrimination under monopoly
(ii) Kinked demand curve model of oligopoly
(iii) WTO and its objectives
(iv) Quasi-rent
(v) Allocative efficiency
4. Blocks and Units
BECC 132 is divided into 4 blocks and 11 units: Market Structure, Factor Market, Economic Welfare with Market Failure and the Role of the State, and International Trade. Block 1 alone carries four units, which is why market structure questions fill so much of every paper.
| Block | Unit | Topics examiners pick from |
|---|---|---|
| Block 1: Market Structure | Unit 1: Perfect Competition: Equilibrium of the Firm and Industry | Short-run supply curve above AVC; shut-down point; long-run zero economic profit |
| Block 1: Market Structure | Unit 2: Monopoly: Price and Output Decisions | MR = AR(1 − 1/e); third-degree price discrimination; deadweight loss |
| Block 1: Market Structure | Unit 3: Monopolistic Competition: Price and Output Decisions | Product differentiation; selling costs; excess capacity |
| Block 1: Market Structure | Unit 4: Oligopoly: Price and Output Decisions | Cournot reaction functions; Sweezy's kinked demand curve; cartels and collusion |
| Block 2: Factor Market | Unit 5: Factor Market: Factor Price Determination | Derived demand; VMP and MRP curves; marginal productivity theory |
| Block 2: Factor Market | Unit 6: Labour Market | Backward-bending labour supply; minimum wages; role of labour unions |
| Block 2: Factor Market | Unit 7: Land Market | Ricardian rent; modern rent and transfer earnings; quasi-rent |
| Block 3: Economic Welfare | Unit 8: Economic Welfare: Allocative Efficiency under Perfect Competition | Pareto efficiency; MRS equal to MRT; production possibility frontier |
| Block 3: Economic Welfare | Unit 9: Efficiency of the Market Mechanism: Market Failure and the Role of the State | Public goods; externalities; asymmetric information |
| Block 4: International Trade | Unit 10: Theories of International Trade | Absolute advantage; Ricardian comparative advantage; Heckscher-Ohlin theory |
| Block 4: International Trade | Unit 11: WTO and India's Trade Policy | WTO agreements such as TRIPS and TRIMS; effect on Indian agriculture and services |
The official course material is published by IGNOU on eGyanKosh, in the BAG Economics collection, in English and Hindi. Read the units first, then use our answers to see how a unit turns into a 10-mark or 12-mark answer.
If you are still collecting your books and notes, our BECC 132 Study Material follows the same 11-unit order, so every solved answer can be traced back to the unit it came from.
5. How the Paper Is Marked, Section by Section
The June 2026 paper carries 100 marks over 3 hours, split into Section A (40 marks), Section B (48 marks) and Section C (12 marks). You do not answer everything, so choosing the right questions is part of the skill.
| Section | Printed in the paper | You attempt | Marks | What it rewards |
|---|---|---|---|---|
| A | Q1 to Q4, each split into (a) and (b) of 10 marks | Any 2 questions | 2 × 20 = 40 | Long answers plus the Cournot numerical and labour market diagrams |
| B | Q5 to Q10 of 12 marks each | Any 4 questions | 4 × 12 = 48 | Focused answers on shut-down point, monopoly revenue, oligopoly, efficiency, WTO and deadweight loss |
| C | Q11 with five short notes | Any 3 notes | 3 × 4 = 12 | Crisp definitions of price discrimination, kinked demand, WTO, quasi-rent and allocative efficiency |
Read the whole paper once before you pick a single question. Section A choices matter most because each one is worth 20 marks. Compare this pattern with any BAG Question Paper from the same programme and you will see the same 2, 4 and 3 split across economics courses.
6. Topics That Keep Returning
Seven BECC 132 topics appeared in all three official papers we checked: labour demand, profit theory, quasi-rent, public goods, oligopoly, trade theory and the WTO. We compared the June 2026 paper with the June 2022 and December 2023 papers published on IGNOU's site.
| Topic | Unit | Where it was asked | Papers (of 3) |
|---|---|---|---|
| Demand for labour, VMP and MRP | Units 5 and 6 | Jun 22 Q3(a); Dec 23 Q2(a); Jun 26 Q2(a) | 3 |
| Wages and labour supply (wage gaps, unions, backward-bending curve) | Unit 6 | Jun 22 Q3(b); Dec 23 Q2(b); Jun 26 Q2(b) | 3 |
| Theories of profit and innovation | Block 2 | Jun 22 Q5; Dec 23 Q8; Jun 26 Q3(a) | 3 |
| Quasi-rent | Unit 7 | Jun 22 Q6; Dec 23 Q3(a); Jun 26 Q11(iv) | 3 |
| Public goods | Unit 9 | Jun 22 Q11(iii); Dec 23 Q11(i); Jun 26 Q4(a) | 3 |
| Oligopoly models (cartel, kinked demand, cooperative play) | Unit 4 | Jun 22 Q4(b), Q11(vi); Dec 23 Q7, Q11(ii); Jun 26 Q7, Q11(ii) | 3 |
| Trade theory (absolute, comparative, Heckscher-Ohlin) | Unit 10 | Jun 22 Q2(b); Dec 23 Q4(b); Jun 26 Q4(b) | 3 |
| WTO and the Indian economy | Unit 11 | Jun 22 Q8, Q11(i); Dec 23 Q10; Jun 26 Q9, Q11(iii) | 3 |
| Monopoly versus perfect competition equilibrium | Units 1 and 2 | Dec 23 Q1(a); Jun 26 Q1(a) | 2 |
| Shut-down point and the firm's supply curve | Unit 1 | Dec 23 Q5; Jun 26 Q5 | 2 |
| Rent and elasticity of land supply | Unit 7 | Dec 23 Q3(b); Jun 26 Q3(b) | 2 |
| Efficiency and efficient allocation | Unit 8 | Jun 22 Q10; Jun 26 Q8, Q11(v) | 2 |
| Public monopoly pricing | Unit 2 | Jun 22 Q7; Dec 23 Q9, Q11(iv) | 2 |
| Monopolistic competition, selling costs and excess capacity | Unit 3 | Jun 22 Q1(a), Q1(b); Dec 23 Q6, Q11(v) | 2 |
Two patterns stand out. Public monopoly pricing and monopolistic competition were asked in both older papers but skipped in June 2026, so keep them on your list for December 2026. Monopoly revenue, deadweight loss and price discrimination took a bigger share of June 2026 than before.
We only counted each paper we could open on IGNOU's own site, so this is a three-paper count, not a five-year one. For a longer revision list across courses, see our IGNOU Solved Guess Paper page.
7. How Our Answers Are Written and Checked
Every BECC 132 answer is written with each calculation reworked and each diagram checked against the IGNOU units. The answers use the language of the BECC-132 blocks, so they read like the course, not like a general textbook.
Answer length follows the marks. A 10-mark part gets a focused answer with one diagram or worked calculation, a 12-mark Section B answer adds an example or a short table, and a 4-mark note sticks to a definition, one key point and one illustration.
Before writing, the team studied earlier BECC-132 papers to see how examiners phrase each topic. You can browse those papers yourself in our IGNOU Previous Year Question Paper section.
Numericals are solved twice by different methods. In Q1(b), for example, the Cournot output from the reaction functions is checked against the general n-firm formula before the answer is signed off.
8. Solved File Index, Question by Question
BECC 132 is a theory course with no practical or record work, so this index lists all 19 questions in the paid file, the unit each one comes from, and whether its answer appears here. 2 answers are on this page and 17 are in the full file only.
| Question | Topic | Unit | Where the answer is |
|---|---|---|---|
| Q1(a) | Price setting under monopoly versus perfect competition | Units 1 and 2 | Full file |
| Q1(b) | Cournot equilibrium with three firms (numerical) | Unit 4 | Sample 1 above |
| Q2(a) | Labour demand in competitive and imperfect markets | Units 5 and 6 | Full file |
| Q2(b) | Backward-bending supply curve of labour (diagram) | Unit 6 | Full file |
| Q3(a) | Accounting versus economic profit, profit and innovation | Block 2 | Full file |
| Q3(b) | Rent and the elasticity of land supply | Unit 7 | Full file |
| Q4(a) | Public goods and asymmetric information | Unit 9 | Full file |
| Q4(b) | Comparative versus absolute advantage | Unit 10 | Full file |
| Q5 | Shut-down point (diagram) | Unit 1 | Full file |
| Q6 | AR, MR and price elasticity under monopoly | Unit 2 | Sample 2 above |
| Q7 | Cooperative and non-cooperative oligopoly models | Unit 4 | Full file |
| Q8 | Efficient versus inefficient allocation | Unit 8 | Full file |
| Q9 | WTO and its impact on the Indian economy | Unit 11 | Full file |
| Q10 | Deadweight loss of monopoly | Unit 2 | Full file |
| Q11(i) | Third-degree price discrimination (short note) | Unit 2 | Full file |
| Q11(ii) | Kinked demand curve (short note) | Unit 4 | Full file |
| Q11(iii) | WTO objectives (short note) | Unit 11 | Full file |
| Q11(iv) | Quasi-rent (short note) | Unit 7 | Full file |
| Q11(v) | Allocative efficiency (short note) | Unit 8 | Full file |
9. Which Programmes Include BECC 132
BECC 132 is studied in the Bachelor of Arts (General), BAG, and in the four-year Bachelor of Arts Multidisciplinary, BAM, where IGNOU issues the same assignments for both. The term-end paper header itself reads B.A. (General) (BAG).
In the IGNOU Bachelor of Arts (General), BECC-132 is the second microeconomics course in the Economics discipline. It assumes you already know demand, cost curves and consumer equilibrium from BECC-131 and moves straight into how firms behave in different markets.
BAM learners who choose Economics take the same course with the same four blocks. BA (Honours) Economics students follow a separate microeconomics sequence, such as BECC-108, so check your programme guide before ordering if you are in an honours programme.
10. How to Get the Full Solved Question Paper
Message WhatsApp 9899436384 with the words "BECC 132 June 2026" to get the complete PDF with all 19 answers. Our team replies with the price and payment details, and the file is shared in the same chat once payment is confirmed.
The file you receive has the 2 answers shown above plus the 17 answers that are not on this page, in the same order as the printed paper. That covers every Section A part, all six Section B questions and all five Section C notes, so you can choose any combination in the exam.
11. BECC 132 FAQs
These are the questions students send us most often before ordering the June 2026 file. If yours is not here, ask us on WhatsApp.
Is this solved paper based on the real June 2026 IGNOU paper?
Yes. The file uses the official BECC-132 Principles of Microeconomics-II paper set for the June 2026 term-end examination, with every question kept in its printed wording and numbering. Our team then wrote an answer for each of the 19 questions, sized to the marks shown in the paper, so you can see exactly what a complete answer to that paper looks like.
How do I get the full solved paper, and how many answers does it contain?
Send a message to WhatsApp 9899436384 saying BECC 132 June 2026 solved paper. Our team replies with the price and payment details, and once payment is confirmed we share the PDF in the same chat. The file contains answers to all 19 questions, which includes the 17 that are listed on this page without answers.
Which questions are answered in full on this page?
Two answers are shown in full here. Q1(b) is the Section A Cournot numerical with three firms, solved through reaction functions to a market output of 67.5 and a price of 65. Q6 is the Section B question on average revenue, marginal revenue and price elasticity under monopoly. The other 17 questions appear as printed, with answers only in the full file.
Does the solved file include diagrams for the graph questions?
Yes. This paper asks for diagrams directly in Q2(b) on the backward-bending labour supply curve and Q5 on the shut-down point, and questions such as deadweight loss and the kinked demand curve are hard to score on without one. The full file gives labelled diagrams for these answers so you can practise drawing them the way examiners expect to see them.
Which BECC 132 topics repeat most often?
Across the official June 2022, December 2023 and June 2026 papers, labour demand, profit theory, quasi-rent, public goods, oligopoly models, trade theory and the WTO were asked in all three. Shut-down point, rent and elasticity, and efficiency appeared twice. The repeat-topic table on this page lists the exact questions, so you can plan your revision around them.
How many questions and marks are in the term-end paper?
The June 2026 paper carries 100 marks over 3 hours. Section A has four questions split into 10-mark parts, and you answer any two. Section B has six 12-mark questions, and you attempt any four. Section C asks for any three short notes out of five at 4 marks each. Counting parts and notes separately, the paper has 19 questions.
Is the solved paper useful for BAM students as well as BAG?
Yes. BECC-132 is the same course whether you are in the Bachelor of Arts (General), BAG, or the four-year Bachelor of Arts Multidisciplinary, BAM, and IGNOU issues its assignments for both. The term-end paper header reads B.A. (General) (BAG), but the course content, blocks and question style are the same, so the solved answers apply to both groups of learners.
Can I use the June 2026 solved paper to prepare for December 2026?
Yes, and it is one of the better ways to prepare. Most BECC-132 topics, such as labour demand, quasi-rent, oligopoly and WTO, have come back across sessions, so practising complete answers to a recent paper builds the exact skills the next paper tests. Use it alongside your IGNOU blocks and past papers, and focus first on the topics marked as repeating.
12. Who Wrote and Checked the BECC 132 Answers
The BECC 132 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 blocks and the official term-end paper. Sheetal Kirola, Academic Head (M.Ed.), re-solves every numerical and checks each diagram label before release.