Assignment Questions (Semester 1, 2013)

Microeconomics Worth 20% of total assessment: Answer all five (5) of the following questions. Question 1: Sketch the following cost curves and discuss the reasons for the shapes of the curves (a) (b) (c) (d) The Marginal Cost Curve The Average Cost Curve The Average Fixed Cost Curve The Average Variable Cost Curve

Question 2 Explain the relationship between the law of diminishing returns and the concept of economies of scale.

Question 3

80 (a) Discuss the following statement: In the real world there is no industry which conforms precisely MC to the economists model of perfect competition. This means that the model is of little practical value. 70

(b)

Illustrate with a diagram and explain the short-run perfectively competitive equilibrium for both (i) the individual firm and (ii) the industry; 60
50

(c) Illustrate with a diagram and explain the long-run perfectly competitive equilibrium for the firm. AC
40

Question 4

30

In what ways could a monopoly be (a) more efficient (b) less efficient than several firms competing against each other? Discuss this statement with the use 20 of appropriate diagrams. AR Question 5:
10 0

(a) Outline a micro-economic reform issue that is relevant to the Australian economy i.e. 0 200 300 400 500 600 why has there been reform in this industry or 100 market?
-10

(b) How successful do you think these reform measures were and say why referring MR to -20 some data or research that has been performed. Quantity
END OF ASSIGNEMENT THANK YOU

Semester 1, 2013- Mt Helen Campus

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