# FREE IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24

IGNOU BECC-131 is a course under the Bachelor of Arts (BA) program offered by Indira Gandhi National Open University (IGNOU). To successfully complete the course and be eligible to appear for the exams in June 2024, students are required to submit the IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24 for the academic year 2023-24.

Below are the details of the IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24:

 BECC-131 Assignments FOR JULY 2023 AND JAN 2024 ADMISSION DOWNLOAD PDF ENGLISH   HINDI

IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24 Submission: Students are advised to submit the IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24 as per the specified schedule. The assignments must be submitted in soft copy/PDF format through the designated portal or email, as instructed by the university.

Guidelines for Preparing IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24: While preparing the IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24, students must adhere to the following guidelines:

## FREE IGNOU BECC-131 SOLVED ASSIGNMENT 2023-24 –

Answer the following Descriptive Category questions in about 500 words each. Each question carries 20 marks 2 × 20 = 40
1. (a) The behaviour of the firm which seems to be efficient in the short-run may found to be inefficient in the long-run. Do you agree? Explain using appropriate diagram.
Efficiency in the Short-Run vs. Long-Run: A Comparative Analysis – Efficiency is a fundamental concept in economics that refers to the optimal allocation of resources to maximize output or minimize costs. It can be evaluated both in the short-run and the long-run, where the time horizon plays a significant role in determining the behavior of a firm. While a firm might appear efficient in the short-run, its efficiency can evolve in the long-run due to various factors. In this essay, we will explore this dynamic by utilizing appropriate diagrams and explanations.

Short-Run Efficiency: In the short-run, a firm’s efficiency is often analyzed through the lens of its production and cost curves. The short-run is characterized by the presence of fixed inputs, which restrict the firm’s ability to make major adjustments to its production process. This leads to the concept of diminishing marginal returns. As the firm increases its variable inputs (like labor), the additional output gained from each additional unit of input decreases after a certain point, leading to a flatter portion of the firm’s production curve.

In the context of cost, the short-run efficiency is assessed using the average total cost (ATC) curve. The ATC curve is U-shaped due to economies of scale initially and diseconomies of scale at higher levels of output. Short-run efficiency is achieved when the firm produces at the point where marginal cost (MC) intersects ATC, ensuring that costs are minimized for the given level of output. If the firm produces below this point, it can increase efficiency by producing more; if it produces beyond this point, efficiency can be improved by producing less.

Long-Run Efficiency: In the long-run, a firm has the flexibility to adjust all inputs, including capital and labor. This allows it to fully optimize its production process and overcome the limitations imposed by fixed inputs in the short-run. The concept of economies and diseconomies of scale becomes more pronounced in the long-run. A firm can expand or contract its scale of operations to achieve the lowest possible cost per unit of output.

The long-run average cost (LRAC) curve represents the minimum possible average cost for each level of output when all inputs are variable. The shape of the LRAC curve depends on the extent of economies and diseconomies of scale. If a firm’s scale of operation allows it to exploit economies of scale fully, the LRAC curve will exhibit a downward-sloping trend over a wide range of output. On the other hand, if the firm faces significant diseconomies of scale, the LRAC curve might be upward-sloping beyond a certain level of output.

Efficiency Comparison and Diagram: Now, let’s consider a diagram to illustrate the evolution of efficiency from the short-run to the long-run. Imagine an initially small firm in a perfectly competitive market. In the short-run, the firm might operate at point A on the ATC curve, producing Q1 units of output. At this point, the firm’s behavior seems efficient because it’s producing at the minimum point of its short-run cost curve.

However, as the firm expands its operations in the long-run and experiences economies of scale, it can achieve lower costs per unit of output. This is represented by the downward-sloping segment of the LRAC curve. The firm moves from point A to point B on the LRAC curve, producing Q2 units of output. At this point, the firm has achieved higher efficiency than in the short-run because it’s operating at a lower cost level.

It’s important to note that beyond a certain level of output, the firm might encounter diseconomies of scale, causing the LRAC curve to slope upwards. This means that while the firm appeared efficient at point B, producing even more in the long-run could lead to cost inefficiencies, represented by points C and D on the LRAC curve.

In conclusion, the behavior of a firm that appears efficient in the short-run can indeed become inefficient in the long-run. This transition is driven by the dynamic nature of production processes, the ability to adjust all inputs, and the interplay between economies and diseconomies of scale. The evolution of efficiency is graphically illustrated through the short-run and long-run cost curves, which depict how a firm’s cost-minimizing behavior can change with changes in its scale of operation.

Diagram:

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LRAC |                      C

|                  /
|               /
|             /
|           /
|         /
|       /
|     /
|    /
| /

——–|————> Quantity of Output

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|             B
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ATC     |

| A
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