8/16/2019 imp Questions to Be Referred - Module 2 & 3

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EFM

Sample Questions

Module 2 (Ch: 14, 15, 16, 17, and 21)1. Define the competitive firm and explain the features of competitive market.

2. Draw the cost curves for a typical competitive firm. For a given price, explain how the

firm choose the level of output that maximize profit.

3. nder what condition will a firm shut down temporarily! "xplain.

#. nder what conditions will a firm exit a market! "xplain.

$. "xplain the supply curve in a competitive market including short run % long run.

&. 'hat is the meaning of monopoly! (nd why monopoly arises!

). "xplain the natural monopoly with an example.

*. Draw the demand, marginal revenue, and marginal cost curves for a monopolist. +how

the profit maximizing level of output. +how the profit maximizing price.

. -ow economic well eing is reduced from the monopoly/s use of market power!

10. Descrie the two prolems that arise when regulators tell a natural monopoly that it must

set a price eual to marginal cost.

11. "xplain price discrimination in detail with two examples.

12. 'hat is oligopoly! "xplain with examples.

13. 'hat is a cartel and what uantity and price would they try to set!

1#. -ow does the numer of firms in an oligopoly affect the outcome in its market!

1$. 'hat is prisoners/ dilemma and what does it have to do with oligopoly!

1&. 'hat is resale price maintenance and why it is controversial!

1). Define monopolistic competition.

1*. Descrie how monopolistic competition like monopoly! -ow is it like perfect

competition!

8/16/2019 imp Questions to Be Referred - Module 2 & 3

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1. Draw a diagram depicting a firm in a monopolistically competitive market that is making

 profits. ow show what happens to this firm as new firms enter the industry.

20. 'hat are the main differences etween monopolistic % perfect competition!

21. -ow might advertising reduce economic well eing! -ow might advertising increaseeconomic well eing!

22. "xplain udget constraint and 4ndifference curve. (lso explain how consumer 

euilirium is achieved with the help of them!

Module 3 ( Ch: 23, 24, 25)

23. 'rite a note on circular flow diagram.

2#. 'hat is 5D and explain the components of 5D6.

2$. 'hat is real 5D6, nominal 5D6 and 5D6 deflator!

2&. 4s 5D6 a good measure of "conomic well7eing!

2). 'rite a short note on8 9onsumer 6rice 4ndex:964; .