please use your own words don’t copy and paste (no plagiarism)
– All answered must be typed using Times New Roman (size 12, double-spaced)
– I want answer with APA reference, References at least 3
- A monopoly occurs when there are barriers entering the market. List 3 types of these barriers with explanation and example. (1 Mark)
- Fill the following table for a monopolist firm. (1 Mark)
- Draw the demand curve and the marginal revenue curve for the above table. And explain the relationship between the marginal revenue and the price. (1 Mark)
|
Marginal revenue |
Total revenue |
Output |
Price |
|
0 |
$100 |
||
|
1 |
$85 |
||
|
2 |
$70 |
||
|
3 |
$55 |
||
|
4 |
$40 |
||
|
5 |
$25 |
Question 2.
- Explain the effects of low price-guarantee on the price. (1 Mark)
- Give reasons, when average cost increases as the total output increases for an increasing cost industry. (1 Mark)
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