ECO402 Microeconomics Final paper 23 February 2013

Total question 60

MCqs 52

1. what is meant by non proce competition why do monopolistics competitors engage in it whilr perfectly competitors firms do not?


2. what are the basic characteristics of monopolistically competitive market? what would happen to equilibrium price & quality in such a market if one firm launches a new and improved product?


3.Determine the rules of tumb price when the monopolists has a marginal cost of Rs. 25 and the price of elasticity of demand -3.0?


4.it has been said that in case of snob effect market demand is more elastic prove this with example.


5. why does price leadership some times evolve in ologopolistic market? expalin how the price leader determines or profit maximizing price?