ECO402 Microeconomics Final Paper March 2014

Today was my paper of ECO402 mostly MCQs are from past papers n quiz files
3 questions are of 3marks n 5 are of 5marks
1.why there is no supply curve under condition of monopoly?(3)
2.how can a firm check that its advertising-to-sale ratio is not too high or too low? what information does it need?(3)
3.1 question was about rival’s response when choosing output and price (3)

5marks questions

1.why does price leadership sometimes involve in oligopolistic market?explain how the price leader determines a profit maximization price(5)
2.define two part tariff. give examples(5)
3.why do firms have large monopoly power while other have little or no monopoly power?(5)
4.explain difference between consumer surplus and producer surplus with help of diagram.(5)
5.It has been said that in case of snob effect market demand is less elastic and incase of bandwagon effect demand is more elastic prove this with the help of example(5)

Another Paper:

Total Qs: 60

Total mcqs: 52

The short and long Qs are as follows:

  1. when 3rd degree price discrimintation is feasible?
  2. why price leadership evolve in some oligopolistic markets? how they choose profit max. pricing?
  3. what are the factors of firms elasticity of demand?
  4. what are conditions of burden of taxes; discuss w.r.t both consumers and producers?
  5. if sales tax is imposed then what would be the affect on prices and output and also the no. of firms in the market?
  6. calculate real prices. (data was given)
  7. write down the conditions of competitive market equilibrium and if a firm in the market produce a new and improved version of the prodcut what would be the affect on the equilibrium price and quantity?
  8. which model illustrates price competitoin in an oligopolistic market?