QUESTION 1
(a) Being the manager of New Bakery Co. Ltd, show how your short-run production decision will differ from your long run production process
(b) Compare and contrast the monopolist and the monopolistic firm
(c) Monopolistic competition is an inefficient form of organisation. Discuss
QUESTION 2
(a) Explain three different models of oligopoly. Support your answer with appropriate examples
(b) Under the oligopolistic market structure, all possible responses of competitors are considered. How will you model the strategic behaviour of firms and determine their optimal strategies?
QUESTION 3
(a) What are the consequences of adverse selection and moral hazard in the insurance market?
(b) Discuss the different ways government may intervene in the presence of market failures
QUESTION 4
(a) What are the different forms of price discrimination? Explain the conditions that need to be met to practice each form of price discrimination
(b) Managerial decision-making involves risk and uncertainty. Analyse the possible behaviours of managers towards risk