Section 1: Microeconomics

Discuss the view that competitive markets will always achieve allocative efficiency.

Calculate the equilibrium price and quantity per month.

Calculate the excess demand/excess supply (state which of these) at a price of $8.50.

Calculate the price at which excess demand of 18 widgets would result.

Define the term social (community) surplus.

Calculate the social (community) surplus in the market for cotton in San Marcus.

Calculate the resulting change in producer surplus following the introduction of the subsidy to cotton producers in San Marcus.

Calculate the change in the consumer surplus resulting from the subsidy.

Examine the view that the best allocation of resources, from society’s point of view, occurs where the marginal private benefit equals the marginal private cost.

Define the term excess demand indicated in bold in the text (paragraph [3]).

Identify the slope of the supply curve.

Draw and label the new supply curve on Figure 1.

Using your answer to part (c), outline the reason why an increase in costs of production has resulted in a new supply function.

Calculate the change in producer surplus resulting from the increase in costs of production.

Calculate the change in consumer surplus in Country Z as a result of the increase in demand for oranges.

Calculate the change in social (community) surplus as a result of the increase in demand for oranges.

Draw and label a curve that illustrates Fairland’s minimum wage on Figure 6.

Calculate the resulting unemployment among the low-wage workers.

Determine the slope of the market supply function for the corn farmers in Nissos.

Calculate the monthly equilibrium quantity of corn in Nissos.

Using Figure 1, calculate the consumer surplus in Nissos at the market equilibrium.

Plot and label the new supply curve on Figure 2.

Assuming that 25 000 pencils are produced initially, identify the opportunity cost for Country H if the production of rice is to be increased by 100 %.

Identify the slope of the supply curve.

Draw and label the new supply curve on Figure 1.

Using your answer to part (c), outline the reason why an increase in costs of production has resulted in a new supply function.

Calculate the change in producer surplus resulting from the increase in costs of production.

Identify the slope of the supply curve.

Draw and label the new supply curve on Figure 1.

Using your answer to part (c), outline the reason why an increase in costs of production has resulted in a new supply function.

Calculate the change in producer surplus resulting from the increase in costs of production.

Calculate the change in consumer surplus in Country Z as a result of the increase in demand for oranges.

Calculate the change in social (community) surplus as a result of the increase in demand for oranges.

Calculate the change in consumer surplus in Country Z as a result of the increase in demand for oranges.

Calculate the change in social (community) surplus as a result of the increase in demand for oranges.

Draw and label a curve that illustrates Fairland’s minimum wage on Figure 6.

Calculate the resulting unemployment among the low-wage workers.

Draw and label a curve that illustrates Fairland’s minimum wage on Figure 6.

Calculate the resulting unemployment among the low-wage workers.

Determine the slope of the market supply function for the corn farmers in Nissos.

Calculate the monthly equilibrium quantity of corn in Nissos.

Using Figure 1, calculate the consumer surplus in Nissos at the market equilibrium.

Determine the slope of the market supply function for the corn farmers in Nissos.

Calculate the monthly equilibrium quantity of corn in Nissos.

Using Figure 1, calculate the consumer surplus in Nissos at the market equilibrium.

Plot and label the new supply curve on Figure 2.

Plot and label the new supply curve on Figure 2.

Assuming that 25 000 pencils are produced initially, identify the opportunity cost for Country H if the production of rice is to be increased by 100 %.

Assuming that 25 000 pencils are produced initially, identify the opportunity cost for Country H if the production of rice is to be increased by 100 %.

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss the view that competitive markets will always achieve allocative efficiency.

Calculate the equilibrium price and quantity per month.

Calculate the excess demand/excess supply (state which of these) at a price of $8.50.

Calculate the price at which excess demand of 18 widgets would result.

Calculate the equilibrium price and quantity per month.

Calculate the excess demand/excess supply (state which of these) at a price of $8.50.

Calculate the price at which excess demand of 18 widgets would result.

Define the term social (community) surplus.

Calculate the social (community) surplus in the market for cotton in San Marcus.

Calculate the resulting change in producer surplus following the introduction of the subsidy to cotton producers in San Marcus.

Calculate the change in the consumer surplus resulting from the subsidy.

Define the term social (community) surplus.

Calculate the social (community) surplus in the market for cotton in San Marcus.

Calculate the resulting change in producer surplus following the introduction of the subsidy to cotton producers in San Marcus.

Calculate the change in the consumer surplus resulting from the subsidy.

Examine the view that the best allocation of resources, from society’s point of view, occurs where the marginal private benefit equals the marginal private cost.

Examine the view that the best allocation of resources, from society’s point of view, occurs where the marginal private benefit equals the marginal private cost.

Define the term excess demand indicated in bold in the text (paragraph [3]).

Define the term excess demand indicated in bold in the text (paragraph [3]).

Explain how the value of the cross price elasticity of demand (XED) for a particular good is determined by its relationship to other goods.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Examine the significance of price elasticity of demand for the decision making of firms and government.

Widgets and Pidgets have negative cross price elasticity of demand (XED).
Explain how the demand function for Widgets, Qd = 249 − 4P, is likely to change as a result of an increase in the price of Pidgets.

Explain two determinants of the price elasticity of demand (PED).

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

Explain why price elasticity of demand varies along the length of a straight-line demand curve.

Examine the significance of price elasticity of demand for the decision-making of firms and governments. 

The time taken to produce goods is an important determinant of the price elasticity of supply.

Apart from time, explain two factors which influence the price elasticity of supply.

Evaluate the importance of cross price elasticity of demand for a business selling a good if the price of a related good increases.

Discuss the significance of price elasticity of demand (PED) for a government imposing an indirect tax on a good.

Explain how knowledge of price elasticity of demand could be used by a firm that is considering changing the price of its product.

Explain why the price elasticity of demand for primary commodities is often relatively low while the price elasticity of demand for manufactured goods is often relatively high.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

Country D is an economically less developed country that specializes in the production of primary products. 

Explain two implications for Country D of a relatively low income elasticity of demand for its primary products.

Good A and Good B are in joint supply.

Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.

The time taken to produce goods is an important determinant of the price elasticity of supply.

Apart from time, explain two factors which influence the price elasticity of supply.

The time taken to produce goods is an important determinant of the price elasticity of supply.

Apart from time, explain two factors which influence the price elasticity of supply.

Evaluate the importance of cross price elasticity of demand for a business selling a good if the price of a related good increases.

Evaluate the importance of cross price elasticity of demand for a business selling a good if the price of a related good increases.

Discuss the significance of price elasticity of demand (PED) for a government imposing an indirect tax on a good.

Discuss the significance of price elasticity of demand (PED) for a government imposing an indirect tax on a good.

Explain how knowledge of price elasticity of demand could be used by a firm that is considering changing the price of its product.

Explain how knowledge of price elasticity of demand could be used by a firm that is considering changing the price of its product.

Explain why the price elasticity of demand for primary commodities is often relatively low while the price elasticity of demand for manufactured goods is often relatively high.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Explain why the price elasticity of demand for primary commodities is often relatively low while the price elasticity of demand for manufactured goods is often relatively high.

Discuss the importance of price elasticity of demand and cross price elasticity of demand for a firm’s decision making.

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

Country D is an economically less developed country that specializes in the production of primary products. 

Explain two implications for Country D of a relatively low income elasticity of demand for its primary products.

Good A and Good B are in joint supply.

Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

Country D is an economically less developed country that specializes in the production of primary products. 

Explain two implications for Country D of a relatively low income elasticity of demand for its primary products.

Good A and Good B are in joint supply.

Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.

Explain how the value of the cross price elasticity of demand (XED) for a particular good is determined by its relationship to other goods.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Explain how the value of the cross price elasticity of demand (XED) for a particular good is determined by its relationship to other goods.

Examine the significance of both cross price elasticity of demand and income elasticity of demand for a firm.

Examine the significance of price elasticity of demand for the decision making of firms and government.

Examine the significance of price elasticity of demand for the decision making of firms and government.

Widgets and Pidgets have negative cross price elasticity of demand (XED).
Explain how the demand function for Widgets, Qd = 249 − 4P, is likely to change as a result of an increase in the price of Pidgets.

Explain two determinants of the price elasticity of demand (PED).

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

Widgets and Pidgets have negative cross price elasticity of demand (XED).
Explain how the demand function for Widgets, Qd = 249 − 4P, is likely to change as a result of an increase in the price of Pidgets.

Explain two determinants of the price elasticity of demand (PED).

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

Explain why price elasticity of demand varies along the length of a straight-line demand curve.

Examine the significance of price elasticity of demand for the decision-making of firms and governments. 

Explain why price elasticity of demand varies along the length of a straight-line demand curve.

Examine the significance of price elasticity of demand for the decision-making of firms and governments. 

A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets.

Explain two reasons why a government might want to subsidize a good or service.

Discuss the view that governments should tax the consumption of gasoline (petroleum).

Using a demand and supply diagram, explain the effect of government subsidies on the US corn market (paragraph [5]).

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.

Explain why a government might decide to impose a price ceiling on goods and services such as essential foods or rented housing.

Discuss the view that the provision of subsidies by the government on goods such as agricultural products will always be beneficial to stakeholders.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using a demand and supply diagram, explain how the cut in fuel subsidies may have had “severe consequences for low-income households” (paragraph [7]).

Using a demand and supply diagram, explain why the increase in the minimum wage might affect Cambodia’s garment manufacturing competitiveness against other countries in the region (paragraph [4]).

Explain one possible advantage and one possible disadvantage of governments setting a price floor in agricultural markets.

Draw and label on Figure 1 a curve that illustrates the price floor in Nissos that leads to a monthly surplus of 3 million kg of corn.

State one measure that the government of Nissos might take to deal with this corn surplus, following the imposition of the price floor.

Using Figure 1, determine the size of the decrease in monthly corn consumption following the imposition of the price floor.

Using Figure 1, calculate the change in consumer expenditure on corn in Nissos.

Explain the impact of a price floor on market outcomes.

Discuss the consequences for different stakeholders when the government imposes a price ceiling on a market.

Discuss how the introduction of a subsidy in a market will affect consumers, producers and the government.

Explain two reasons why a government might impose indirect taxes.

Discuss the view that price floors are more effective than subsidies in providing assistance to producers in the agricultural sector.

Explain why governments impose price floors in the market for agricultural products.

Explain why governments provide subsidies.

Evaluate the effectiveness of price floors in achieving a reduction in the consumption of demerit goods.

Using a demand and supply diagram, explain the impact on households of “removing some subsidies on food” (paragraph [5]).

Calculate the shortage resulting from the imposition of the maximum price.

Calculate the change in producer surplus resulting from the imposition of the maximum price.

Calculate the change in consumer expenditure on rice resulting from the imposition of the maximum price.

State two methods of non-price rationing.

Using a demand and supply diagram, explain how the cut in fuel subsidies may have had “severe consequences for low-income households” (paragraph [7]).

Using a demand and supply diagram, explain how the cut in fuel subsidies may have had “severe consequences for low-income households” (paragraph [7]).

Using a demand and supply diagram, explain why the increase in the minimum wage might affect Cambodia’s garment manufacturing competitiveness against other countries in the region (paragraph [4]).

Using a demand and supply diagram, explain why the increase in the minimum wage might affect Cambodia’s garment manufacturing competitiveness against other countries in the region (paragraph [4]).

Explain one possible advantage and one possible disadvantage of governments setting a price floor in agricultural markets.

Draw and label on Figure 1 a curve that illustrates the price floor in Nissos that leads to a monthly surplus of 3 million kg of corn.

State one measure that the government of Nissos might take to deal with this corn surplus, following the imposition of the price floor.

Using Figure 1, determine the size of the decrease in monthly corn consumption following the imposition of the price floor.

Using Figure 1, calculate the change in consumer expenditure on corn in Nissos.

Explain one possible advantage and one possible disadvantage of governments setting a price floor in agricultural markets.

Draw and label on Figure 1 a curve that illustrates the price floor in Nissos that leads to a monthly surplus of 3 million kg of corn.

State one measure that the government of Nissos might take to deal with this corn surplus, following the imposition of the price floor.

Using Figure 1, determine the size of the decrease in monthly corn consumption following the imposition of the price floor.

Using Figure 1, calculate the change in consumer expenditure on corn in Nissos.

Explain the impact of a price floor on market outcomes.

Discuss the consequences for different stakeholders when the government imposes a price ceiling on a market.

Explain the impact of a price floor on market outcomes.

Discuss the consequences for different stakeholders when the government imposes a price ceiling on a market.

Discuss how the introduction of a subsidy in a market will affect consumers, producers and the government.

Discuss how the introduction of a subsidy in a market will affect consumers, producers and the government.

Explain two reasons why a government might impose indirect taxes.

Discuss the view that price floors are more effective than subsidies in providing assistance to producers in the agricultural sector.

Explain two reasons why a government might impose indirect taxes.

Discuss the view that price floors are more effective than subsidies in providing assistance to producers in the agricultural sector.

Explain why governments impose price floors in the market for agricultural products.

Explain why governments impose price floors in the market for agricultural products.

Explain why governments provide subsidies.

Evaluate the effectiveness of price floors in achieving a reduction in the consumption of demerit goods.

Explain why governments provide subsidies.

Evaluate the effectiveness of price floors in achieving a reduction in the consumption of demerit goods.

Using a demand and supply diagram, explain the impact on households of “removing some subsidies on food” (paragraph [5]).

Using a demand and supply diagram, explain the impact on households of “removing some subsidies on food” (paragraph [5]).

Calculate the shortage resulting from the imposition of the maximum price.

Calculate the change in producer surplus resulting from the imposition of the maximum price.

Calculate the change in consumer expenditure on rice resulting from the imposition of the maximum price.

State two methods of non-price rationing.

Calculate the shortage resulting from the imposition of the maximum price.

Calculate the change in producer surplus resulting from the imposition of the maximum price.

Calculate the change in consumer expenditure on rice resulting from the imposition of the maximum price.

State two methods of non-price rationing.

A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets.

A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets.

Explain two reasons why a government might want to subsidize a good or service.

Discuss the view that governments should tax the consumption of gasoline (petroleum).

Explain two reasons why a government might want to subsidize a good or service.

Discuss the view that governments should tax the consumption of gasoline (petroleum).

Using a demand and supply diagram, explain the effect of government subsidies on the US corn market (paragraph [5]).

Using a demand and supply diagram, explain the effect of government subsidies on the US corn market (paragraph [5]).

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.

Explain why a government might decide to impose a price ceiling on goods and services such as essential foods or rented housing.

Explain why a government might decide to impose a price ceiling on goods and services such as essential foods or rented housing.

Discuss the view that the provision of subsidies by the government on goods such as agricultural products will always be beneficial to stakeholders.

Discuss the view that the provision of subsidies by the government on goods such as agricultural products will always be beneficial to stakeholders.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

To what extent is advertising the most effective way of increasing the consumption of merit goods?

Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Discuss the implications of the direct provision of public goods by a government.

Define the term sustainability indicated in bold in the text (paragraph [6]).

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Define the term asymmetric information indicated in bold in the text (paragraph [6]).

Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

State two government responses to the abuse of monopoly power.

Discuss the implications of the direct provision of public goods by a government.

Discuss the implications of the direct provision of public goods by a government.

Define the term sustainability indicated in bold in the text (paragraph [6]).

Define the term sustainability indicated in bold in the text (paragraph [6]).

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain why the percentage of infants receiving measles vaccinations in Nigeria indicates the existence of a market failure (Table 1).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Using an externalities diagram, explain why the garment industry is a source of market failure (paragraph [8]).

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

Discuss whether government regulation is the most effective way to deal with negative externalities of consumption.

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Using an externalities diagram, explain how “greater access to education” for girls in Pakistan could reduce market failure (paragraph [5]).

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Using an externalities diagram, explain why “business pollution” is leading to market failure in STP (paragraph [5]).

Define the term asymmetric information indicated in bold in the text (paragraph [6]).

Define the term asymmetric information indicated in bold in the text (paragraph [6]).

Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.

Evaluate the view that the threat to sustainability, caused by economic activity requiring the use of fossil fuels, is best addressed through the use of carbon taxes.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Discuss the view that tradable permits are more effective than taxes in reducing pollution.

Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).

Using an externalities diagram, explain why the construction of dams on the Mekong River might lead to market failure (paragraph [2]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

State two government responses to the abuse of monopoly power.

State two government responses to the abuse of monopoly power.

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

To what extent is advertising the most effective way of increasing the consumption of merit goods?

To what extent is advertising the most effective way of increasing the consumption of merit goods?

Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).

Using an externalities diagram, explain how the widespread use of solar panels will decrease the negative externalities of consumption caused by the use of kerosene lamps (paragraph [5]).

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Discuss the view that imposing an indirect tax on gasoline (petrol) is the most effective way of reducing the market failure caused by cars.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using an appropriate externalities diagram, explain why a government might decide to impose a price floor on a demerit good.

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Using an externalities diagram, explain how the Chinese infrastructure projects have caused negative externalities (paragraph [6]).

Explain two factors that might give rise to economies of scale for a firm.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Explain why some firms might choose the goal of profit maximization while others might choose to adopt satisficing behaviour.

Discuss whether price will always be lower and output will always be higher in perfect competition compared to monopoly.

Draw and label the marginal revenue (MR) curve for the 2018 Football World Cup final.

Using the diagram and your answers to parts (j) and (k), explain how the organizers could achieve their goal of profit maximisation.

Discuss whether an oligopolistic firm should collude rather than compete.

Define the term total revenue indicated in bold in the text (paragraph [6]).

Using a theory of the firm diagram, explain the output and pricing decision of M-Kopa if it chooses to pursue the goal of revenue maximization (paragraph [6]).

Calculate Firm A’s average fixed costs when it is producing 125 cartons of coffee per month.

Calculate Firm A’s average variable costs when it is producing 125 cartons of coffee per month.

Using Figure 2, calculate the average fixed costs when 80 cans per month are produced.

Using Figure 2, calculate the total costs when 55 cans per month are produced.

Using this information, draw and label the average revenue curve on Figure 2.

(ii) Using Figure 2, identify the quantity of cans per month Firm B must produce in order to maximize profits.

(iii) Calculate the economic profit when Firm B is producing at the output level identified in part (ii).

Firm B conducted a market survey and found out that the price elasticity of demand for its brand of tea is 0.8 among urban customers, whereas it is 1.2 among customers in rural areas. The sales director said “This information could help Firm B to raise its revenue, by trying to separate the two markets, provided that certain conditions are satisfied”. Explain this statement.

Explain the relationship between the law of diminishing returns and a firm’s short-run cost curves.

Evaluate the view that monopoly is an undesirable market structure as it fails to achieve productive and allocative efficiency.

Examine the role of barriers to entry in making monopoly a less desirable market structure than perfect competition.

Define the term variable costs indicated in bold in the text (paragraph [4]).

Draw and label the marginal revenue (MR) curve for the concert on Figure 3.

Calculate the maximum revenue that could be earned from selling tickets for the concert.

Calculate the average fixed cost per ticket if all tickets are sold.

Assuming the event organizers aim to maximize profit, calculate the profit that will be made from the concert.

Calculate the change in expenditure on imported oranges as a result of the increase in demand.

Explain how two types of economies of scale can lead to a fall in long-run average costs.

Discuss the view that barriers to entry in a monopoly will always lead to abnormal profits in the long run.

State two characteristics of a perfectly competitive market.

Using a fully labelled diagram, outline the relationship between marginal product (MP) and average product (AP) of labour.

Draw and label the marginal revenue (MR) curve for corn for an individual farmer in Nissos on the grid below.

Using information from Figure 1, calculate Firm A’s total fixed costs.

The market price of almonds is $11 per kilogram. Using Figure 1, identify the quantity of almonds Firm A must produce in order to maximize profits.

Calculate the economic profit/loss when Firm A is producing at the output level identified in part (b)(i).

Based on the information in Figure 2, state whether the firms in this market are making normal profits, economic profits or economic losses.

On Figure 2, draw and label appropriate additional curves to show how a perfectly competitive market will move from short-run equilibrium to long-run equilibrium.

Using your answer to part (c)(ii), explain how the market adjustment takes place.

State two assumed characteristics of a monopoly.

Explain two reasons why a monopoly may be considered desirable for an economy.

Using Figure 3, calculate the economic profit when Firm B is maximizing its profits.

Using Figure 3, calculate the total revenue when Firm B is maximizing its revenue.

Sketch and label a diagram to illustrate the long-run equilibrium for a firm in monopolistic competition.

Explain how a natural monopoly may arise.

Discuss how governments restrict monopoly power.

Define the term economies of scale indicated in bold in the text (paragraph [3]).

Using a costs diagram, explain how the expansion of the coconut industry could lead to economies of scale (paragraph [4]).

Explain why a monopolistically competitive firm can make economic (abnormal) profit in the short run, but not in the long run.

Discuss the consequences of a perfectly competitive market becoming a monopoly market.

Explain the reasons for the shape of the long-run average total cost curve.

Discuss the view that governments should always try to prevent the creation of barriers to entry in a market.

Using a perfect competition diagram, explain whether farmers in the Philippines are making an economic profit or loss (Table 1).

Using a perfectly competitive firm diagram, explain the effect of declining prices of coffee beans on the profits of Honduras’ coffee farmers in the short run (paragraph [2]).

Sketch the marginal product (MP) and average product (AP) curves for this firm.

Sketch the total product (TP) curve for this firm.

Sketch the marginal revenue (MR) curve for firms in the widget industry.

Sketch the total revenue (TR) curve for firms in the widget industry.

Calculate the firm’s total variable costs if output is 20 000 widgets per month.

Identify the level of output at which the firm would achieve productive efficiency.

Calculate the firm’s monthly total fixed costs if output equals 50 000 units per month.

State two conditions necessary for price discrimination to take place.

Using a diagram (or diagrams), explain why a profit maximizing firm might charge a higher price in one market than in another.

Draw and label the marginal revenue (MR) curve for the concert on Figure 3.

Calculate the maximum revenue that could be earned from selling tickets for the concert.

Calculate the average fixed cost per ticket if all tickets are sold.

Assuming the event organizers aim to maximize profit, calculate the profit that will be made from the concert.

Draw and label the marginal revenue (MR) curve for the concert on Figure 3.

Calculate the maximum revenue that could be earned from selling tickets for the concert.

Calculate the average fixed cost per ticket if all tickets are sold.

Assuming the event organizers aim to maximize profit, calculate the profit that will be made from the concert.

Calculate the change in expenditure on imported oranges as a result of the increase in demand.

Calculate the change in expenditure on imported oranges as a result of the increase in demand.

Explain how two types of economies of scale can lead to a fall in long-run average costs.

Discuss the view that barriers to entry in a monopoly will always lead to abnormal profits in the long run.

Explain how two types of economies of scale can lead to a fall in long-run average costs.

Discuss the view that barriers to entry in a monopoly will always lead to abnormal profits in the long run.

State two characteristics of a perfectly competitive market.

Using a fully labelled diagram, outline the relationship between marginal product (MP) and average product (AP) of labour.

Draw and label the marginal revenue (MR) curve for corn for an individual farmer in Nissos on the grid below.

State two characteristics of a perfectly competitive market.

Using a fully labelled diagram, outline the relationship between marginal product (MP) and average product (AP) of labour.

Draw and label the marginal revenue (MR) curve for corn for an individual farmer in Nissos on the grid below.

Using information from Figure 1, calculate Firm A’s total fixed costs.

The market price of almonds is $11 per kilogram. Using Figure 1, identify the quantity of almonds Firm A must produce in order to maximize profits.

Calculate the economic profit/loss when Firm A is producing at the output level identified in part (b)(i).

Based on the information in Figure 2, state whether the firms in this market are making normal profits, economic profits or economic losses.

On Figure 2, draw and label appropriate additional curves to show how a perfectly competitive market will move from short-run equilibrium to long-run equilibrium.

Using your answer to part (c)(ii), explain how the market adjustment takes place.

State two assumed characteristics of a monopoly.

Explain two reasons why a monopoly may be considered desirable for an economy.

Using Figure 3, calculate the economic profit when Firm B is maximizing its profits.

Using Figure 3, calculate the total revenue when Firm B is maximizing its revenue.

Sketch and label a diagram to illustrate the long-run equilibrium for a firm in monopolistic competition.

Using information from Figure 1, calculate Firm A’s total fixed costs.

The market price of almonds is $11 per kilogram. Using Figure 1, identify the quantity of almonds Firm A must produce in order to maximize profits.

Calculate the economic profit/loss when Firm A is producing at the output level identified in part (b)(i).

Based on the information in Figure 2, state whether the firms in this market are making normal profits, economic profits or economic losses.

On Figure 2, draw and label appropriate additional curves to show how a perfectly competitive market will move from short-run equilibrium to long-run equilibrium.

Using your answer to part (c)(ii), explain how the market adjustment takes place.

State two assumed characteristics of a monopoly.

Explain two reasons why a monopoly may be considered desirable for an economy.

Using Figure 3, calculate the economic profit when Firm B is maximizing its profits.

Using Figure 3, calculate the total revenue when Firm B is maximizing its revenue.

Sketch and label a diagram to illustrate the long-run equilibrium for a firm in monopolistic competition.

Explain how a natural monopoly may arise.

Discuss how governments restrict monopoly power.

Explain how a natural monopoly may arise.

Discuss how governments restrict monopoly power.

Define the term economies of scale indicated in bold in the text (paragraph [3]).

Define the term economies of scale indicated in bold in the text (paragraph [3]).

Using a costs diagram, explain how the expansion of the coconut industry could lead to economies of scale (paragraph [4]).

Using a costs diagram, explain how the expansion of the coconut industry could lead to economies of scale (paragraph [4]).

Explain why a monopolistically competitive firm can make economic (abnormal) profit in the short run, but not in the long run.

Discuss the consequences of a perfectly competitive market becoming a monopoly market.

Explain why a monopolistically competitive firm can make economic (abnormal) profit in the short run, but not in the long run.

Discuss the consequences of a perfectly competitive market becoming a monopoly market.

Explain the reasons for the shape of the long-run average total cost curve.

Discuss the view that governments should always try to prevent the creation of barriers to entry in a market.

Explain the reasons for the shape of the long-run average total cost curve.

Discuss the view that governments should always try to prevent the creation of barriers to entry in a market.

Using a perfect competition diagram, explain whether farmers in the Philippines are making an economic profit or loss (Table 1).

Using a perfect competition diagram, explain whether farmers in the Philippines are making an economic profit or loss (Table 1).

Using a perfectly competitive firm diagram, explain the effect of declining prices of coffee beans on the profits of Honduras’ coffee farmers in the short run (paragraph [2]).

Using a perfectly competitive firm diagram, explain the effect of declining prices of coffee beans on the profits of Honduras’ coffee farmers in the short run (paragraph [2]).

Sketch the marginal product (MP) and average product (AP) curves for this firm.

Sketch the total product (TP) curve for this firm.

Sketch the marginal revenue (MR) curve for firms in the widget industry.

Sketch the total revenue (TR) curve for firms in the widget industry.

Calculate the firm’s total variable costs if output is 20 000 widgets per month.

Identify the level of output at which the firm would achieve productive efficiency.

Calculate the firm’s monthly total fixed costs if output equals 50 000 units per month.

State two conditions necessary for price discrimination to take place.

Using a diagram (or diagrams), explain why a profit maximizing firm might charge a higher price in one market than in another.

Sketch the marginal product (MP) and average product (AP) curves for this firm.

Sketch the total product (TP) curve for this firm.

Sketch the marginal revenue (MR) curve for firms in the widget industry.

Sketch the total revenue (TR) curve for firms in the widget industry.

Calculate the firm’s total variable costs if output is 20 000 widgets per month.

Identify the level of output at which the firm would achieve productive efficiency.

Calculate the firm’s monthly total fixed costs if output equals 50 000 units per month.

State two conditions necessary for price discrimination to take place.

Using a diagram (or diagrams), explain why a profit maximizing firm might charge a higher price in one market than in another.

Explain two factors that might give rise to economies of scale for a firm.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Explain two factors that might give rise to economies of scale for a firm.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Explain why some firms might choose the goal of profit maximization while others might choose to adopt satisficing behaviour.

Discuss whether price will always be lower and output will always be higher in perfect competition compared to monopoly.

Explain why some firms might choose the goal of profit maximization while others might choose to adopt satisficing behaviour.

Discuss whether price will always be lower and output will always be higher in perfect competition compared to monopoly.

Draw and label the marginal revenue (MR) curve for the 2018 Football World Cup final.

Using the diagram and your answers to parts (j) and (k), explain how the organizers could achieve their goal of profit maximisation.

Draw and label the marginal revenue (MR) curve for the 2018 Football World Cup final.

Using the diagram and your answers to parts (j) and (k), explain how the organizers could achieve their goal of profit maximisation.

Discuss whether an oligopolistic firm should collude rather than compete.

Discuss whether an oligopolistic firm should collude rather than compete.

Define the term total revenue indicated in bold in the text (paragraph [6]).

Using a theory of the firm diagram, explain the output and pricing decision of M-Kopa if it chooses to pursue the goal of revenue maximization (paragraph [6]).

Define the term total revenue indicated in bold in the text (paragraph [6]).

Using a theory of the firm diagram, explain the output and pricing decision of M-Kopa if it chooses to pursue the goal of revenue maximization (paragraph [6]).

Calculate Firm A’s average fixed costs when it is producing 125 cartons of coffee per month.

Calculate Firm A’s average variable costs when it is producing 125 cartons of coffee per month.

Using Figure 2, calculate the average fixed costs when 80 cans per month are produced.

Using Figure 2, calculate the total costs when 55 cans per month are produced.

Using this information, draw and label the average revenue curve on Figure 2.

(ii) Using Figure 2, identify the quantity of cans per month Firm B must produce in order to maximize profits.

(iii) Calculate the economic profit when Firm B is producing at the output level identified in part (ii).

Firm B conducted a market survey and found out that the price elasticity of demand for its brand of tea is 0.8 among urban customers, whereas it is 1.2 among customers in rural areas. The sales director said “This information could help Firm B to raise its revenue, by trying to separate the two markets, provided that certain conditions are satisfied”. Explain this statement.

Calculate Firm A’s average fixed costs when it is producing 125 cartons of coffee per month.

Calculate Firm A’s average variable costs when it is producing 125 cartons of coffee per month.

Using Figure 2, calculate the average fixed costs when 80 cans per month are produced.

Using Figure 2, calculate the total costs when 55 cans per month are produced.

Using this information, draw and label the average revenue curve on Figure 2.

(ii) Using Figure 2, identify the quantity of cans per month Firm B must produce in order to maximize profits.

(iii) Calculate the economic profit when Firm B is producing at the output level identified in part (ii).

Firm B conducted a market survey and found out that the price elasticity of demand for its brand of tea is 0.8 among urban customers, whereas it is 1.2 among customers in rural areas. The sales director said “This information could help Firm B to raise its revenue, by trying to separate the two markets, provided that certain conditions are satisfied”. Explain this statement.

Explain the relationship between the law of diminishing returns and a firm’s short-run cost curves.

Evaluate the view that monopoly is an undesirable market structure as it fails to achieve productive and allocative efficiency.

Explain the relationship between the law of diminishing returns and a firm’s short-run cost curves.

Evaluate the view that monopoly is an undesirable market structure as it fails to achieve productive and allocative efficiency.

Examine the role of barriers to entry in making monopoly a less desirable market structure than perfect competition.

Examine the role of barriers to entry in making monopoly a less desirable market structure than perfect competition.

Define the term variable costs indicated in bold in the text (paragraph [4]).

Define the term variable costs indicated in bold in the text (paragraph [4]).