AGE141 Principles of Microeconomics Assignment

Assignment Help Macroeconomics

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AGE141 Principles of Microeconomics - Zambian Open University

Q1. a) Economic Systems do not just happen but are shaped by ideas of famous Economists. Discuss the contribution of Adam Smith, Karl max and John Maynard Keynes to economic systems.

b) Briefly explain the difference between a Market planned and Command planned economy.

Q2. a) With the use of a well labelled diagram, draw a Production function,indicating the three stages of production, the elasticity of production in each stage and the relationship between the Total Physical Product (TPP), Marginal Physical Product (MPP) and Average Physical Product (APP).

b) There are different possible short-run equilibrium pricing positions of the firm under perfect competition. Show using a clearly labelled diagram how the above firm can receive; Economic profits, Normal profits and Economic losses

Q3. a) The price of a commodity was initially K10,000 and 150 units were purchased per day. However, when the price of this commodity was fell to K5,000, the units purchased increased to 200 per day. Calculate the price elasticity of demand for the above price changes

b) Suppose that the market demand and supply for Brazilian hair curves are given by Qd = 200 - 2P and Qs= 50 + P. Calculate the equilibrium price P.

Q4. Write short notes on the following;

a) Difference between the "movement "and "shift" in relation to the supply and demand curves.
b) Difference between Cardinal and Ordinal Utility
c) Indifference curves cannot cross each other
d) Consumer Behaviour

Q5. A fall in the price of a good or service has two effects, the income and substitution effects.Using a suitable diagram, clearly show the above two effects.

Q6. Briefly highlight the structural characteristics of the following markets;
a) Pure Competition.
b) Pure Monopoly.
c) Monopolistic competition.
d) Oligopoly.

Attachment:- Principles of Microeconomics.rar

Reference no: EM132903095

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