Q1. Among the monopoly, perfect competition, monopolistic competition and oligopoly, explain how you would categorize the market for each of the given products:
a) Coke; Pepsi
b) Electricity.
Q2. Use the demand curve to analyze ‘a reduction in British beef necessitates the slaughtering of big number of Cattle’.
Q3. Describe the concept of the arc elasticity of demand.
Q4. Differentiate between the returns to scale and returns to inputs.
Q5. Explain how does the price systems act as the allocation of resources and distributor of goods in the market economy? Describe the allocation principle behind resource use?
Q6. Explain why the market equilibrium is stable beneath normal demand and supply conditions?
Q7. Analyze the effect of price ceiling on the equilibrium quantity and price and on the producer and consumer surpluses.