What do you understand by products differentiation, Business Economics

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Question 1:

Write short notes on any FOUR of the following: (equal marks each)

(a) Law of diminishing returns
(b) Barriers to entry
(c) Consumption Function
(d) Devaluation
(e) Multiplier Effect
(f) Phillips Curve

Question 2:

(a) Giving examples, explain what do you understand by products differentiation?

(b) Discuss the output and price determination of a firm in the short run and long run concerned with differentiated products.

Question 3:

(a) Explain why a firm involved in the steel industry may not opt for a ‘price war' at least in the short run.

(b) Discuss why a member-firm of a cartel is prompted to cheat in the long- run.


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