State the law of diminishing returns. prepare down its causes and effects.
Make a distinction between perfect and imperfect markets.
A monopolist with the linear demand curve finds which 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.
a) Sketch the MC, ATC, MR and demand curves for this monopolist.
b) At what output level would the monopolist generate?
c) At what output level would a perfectly competitive firm generate?
Discuss and critically describe Subsistence Theory and Wage Fund Theory of Wage Determination.
According to Bohm-Bawerk what are the reasons for emergence of rate of interest?
Discuss and critically describe the short run and long run aggregate supply curves.