Question 1:
Write short notes on any FOUR of the following: (equal marks each)
(a) Law of diminishing returns
(b) Barriers to entry
(c) Consumption Function
(d) Devaluation
(e) Multiplier Effect
(f) Phillips Curve
Question 2:
(a) Giving examples, explain what do you understand by products differentiation?
(b) Discuss the output and price determination of a firm in the short run and long run concerned with differentiated products.
Question 3:
(a) Explain why a firm involved in the steel industry may not opt for a ‘price war' at least in the short run.
(b) Discuss why a member-firm of a cartel is prompted to cheat in the long- run.