Question1. Using an instance, make a distinction between private, external and social costs and benefits.
Question2. With the aid of a diagram, describe the differentiation between profit maximizing level of output and socially desirable level of output in presence of negative externality.
Question3. Describe and appraise the techniques that the public and private sectors attempt to deal with negative externalities.
Question4. Using suitable examples make a distinction between public and merit goods.
Question5. Make a distinction between the characteristics of a perfectly competitive market and those of a monopoly market structure.
Question6. To what extent is a monopoly market superior to that of perfectly competitive one?
Question7. Describe how an oligopolistic can decide on the price of its products under the dissimilar pricing strategies.