Compare perfect and imperfect markets, Business Economics

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Question 1 Explain the law of diminishing returns. What are its causes and effects?

Question 2 Compare perfect and imperfect markets

Question 3 A monopolist with a linear demand curve finds that it can sell two units at £ 120 each or 12 units at £ 20 each. Its fixed cost is £ 20 and its marginal cost is constant at £ 30 per unit

  1. Draw the MC, ATC, MR and demand curves for this monopolist
  2. At what output level would the monopolist produce?
  3. At what output level would a perfectly competitive firm produce?

Question 4 Discuss Subsistence Theory and Wage Fund Theory of Wage Determination

Question 5 According to Bohm-Bawerk what are the reasons for the emergence of rate of interest?

Question 6 Discuss the short run and long run aggregate supply curves


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