1. Answer in not more than 8 lines, why do you think there are not much profits for farmers in Indian context while farmers in other advanced countries make profits. Use the concepts discussed in the course for your explanation. - 8 Marks 2. Consider a market with demand given by Q=100-P. The market is perfectly competitive with 60 firms and all have same cost structure. They all have no fixed costs and a constant variable cost of Rs. 40. Answer the following questions: a. What is the profit of the firms in this market? - 1 Mark b. If two firms stop the business due to various reasons, what happens to profits for the remaining firms? What will happen in the long run? - 3 Marks c. Among the 60 firms, if one of them hires a manager who is super-efficient and the cost of the firm reduces to 39 because of this manager only, what will happen to this firm in the short run and in the long run? - 3 Marks 3. Consider a monopolist in vaccines with the market demand given by P=100-2Q. The cost function of the monopolist is given by C = Q2 - 2Q. Answer the following questions: a. What will the price of the vaccines in the market? - 3 Marks b. If the government comes up with a regulation which restricts the price to Rs. 50 per vaccine, how much is the new profit lesser compared to profits in the unregulated market? - 3 Marks c. If the vaccine was to become a perfectly competitive market, what would be the new price of the vaccine in such a market? - 2 Marks