ECO402 Microeconomics (Final Term Paper 2012)

ECO402                Microeconomics (Final Term Paper)

Fall 2013 March

Subjective Questions:

1.     Why does a firm need to equal marginal revenue for each group of commodity with Mc in order to practice optimal third degree price discrimination? Marks : 2

2.     Suppose the Government want to restrict imports of a certain good. Which method is preferred by Government to restrict import? Either import quota or tariff? Marks : 2

3.     What are necessary conditions for equilibrium in competitive factor market? Marks : 3

4.     When third degree price discrimination is feasible? Marks : 3

5.     Monopoly power is used to compare one firm with another. How can we measure it? Marks : 3

6.     Why does price leadership sometime evolved in oligopolistic market. Explain how price leadership determines a profit maximizing price.  Marks : 5

7.     Define market basket. On what assumptions the consumer preferences are base? Marts: 2+ 3

8.     When do competitive markets generate an inefficient allocation of resources or market failure? Marks : 5