Question 1:
Make a distinction between short and long run.
Question 2:
How production is characterised the short run? Elucidate the fully using numerical and diagrammatic demonstrations.
Question 3:
Using instances explain the concepts of diseconomies and economies of scale?
Question 4:
Make a distinction between price, income and cross elasticities of demand for product.
Question 5:
Describe carefully, using numerical and graphical instances how knowledge of price elasticity of demand might assist a manager to increase or decrease price. Demonstrate your answer by the use numerical instances.
Question 6:
It has often been argued that a monopoly has both costs and benefits. Discuss this statement.
Question 7:
Elucidate, using diagram the short and long equilibrium positions of monopoly firm.
Question 8:
Using instances, explain how a monopoly requires barriers to prevent competition.