Question 1:
(a) Discuss the adjustment to an increase in demand for a perfectly competitive market in the:
(i) Short run
(ii) Long run
(b) How would the same industry change if it were organized first as a competitive industry then by a multi-plant monopolist?
Question 2:
(a) Define, explain and illustrate the concept of opportunity cost?
(b) "Consumers and producers pay equal amount of a per-unit tax." Discuss