Question 1:

(a) Clearly illustrate the features of a perfectly competitive firm.

(b) How would the same industry change if it were organized first as a competitive industry then by a multi-plant monopolist?

Question 2:

Given two goods X and Y, assuming Y is a normal good, analyse the income and substitution effect of an increase in price of X if

(i) X is a normal good
(ii) X is an inferior good
(iii) X is a giffen good

Question 3:

Write short notes on any ALL of the following

(a) Barriers to entry
(b) The Kinked Demand Curve
(c) Average Cost and Marginal Cost
(d) Strategic Entry Deterrence
(e) The Prisoners Dilemma