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Perfect competition and monopoly revenue curves

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Reference no: EM132810827

1.Discuss five limitations of using per capita income as a measure of the standard of living in a country

2. By use of a diagram, explain how price and output are determined in a collusive oligopoly (centralized cartel) market situation

3. Highlight five differences between perfect competition and monopolistic competition

4. Using a well labeled diagram, explain how a monopolist enjoy a supernormal profit in both short and long run

5. Highlight five distinctions between perfect competition and monopolistic firms

6. a) With the aid of a diagram, explain how a firm under monopolistic competition is at equilibrium in the short run

b) With the aid of a diagram, explain the difference between perfect competition and monopoly revenue curves

7. a) A newly industrialized country with a population of 40 million people, had its national income estimates during the year 2009 as follows:

Value in Kshs (million)

Exports 250000

Consumption expenditure 624000

Investment 300000

Government spending 416000

Imports 210000

Depreciation 10000

Net indirect taxes 50000

Required:

a) (i) Calculate the GNP per capital of the country

ii) Outline limitations of using GNP pr capita in measuring the standard of living of accounts

b) Discuss five problems that are encountered in measuring National income in your country.

Reference no: EM132810827

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