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Principles of Economics: ECON11026

Assessment Item 2 – Short Answer Questions Length: Approximately 1500-2000 words (Approx. 400-500 words for each question, excluding graphs, tables and reference list) Question 1: Refer to Chapter 6- Imperfect Competition (a) Explain with real life examples and illustrate short-run profit maximizing situation under (i) monopolistic and (ii) dominant firm price leadership under oligopoly. (1.5 marks each= 3 marks) (b) Define, illustrate and explain with examples the method of price discrimination used by (i) airlines and (ii) cinema industry in Australia. (2 marks each=4 marks) Question 2: Refer to Chapter 7- Market Failure and Government Policy (a) Assume that a firm discharges waste…

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