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19
Nov

Principles of Economics: ECON11026

Code: ECON11026 Subject: Principles of Economics Assessment 2 – Short Answer Questions Q1. Market structures chapter 5 (7 marks) (a) Draw graphs and explain why perfectly competitive firms’ are price takers? (2 mark) (b) Draw graphs and explain why perfectly competitive firms make short run loss, short run economic profit, and normal profits in the long run? (5 marks) Q2. Market structures chapter 5 (7 marks) (a) Why a firm is called a natural monopolist? Give examples, draw a graph and explain. (3.5 marks) (b) Is a profit maximising monopoly firm always technically efficient? Draw a graph and explain. (3.5 marks) Q3. Market…

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