ECO402 Current Finalterm papers

ECO402 Paper 3-02-2012
Total 64
56 mcqs
8 short questions
57. Give some examples of third- price .
3 marks
58. If the marginal cost of production is greater than the average variable cost,
does this tell you whether the average variable cost is increasing or
decreasing? Explain.
3 marks
59. What is meant by non price competition? Why do monopolistic
competitors engage in it while perfectly competitive firms do not?
3 marks
60. Give an example of monopoly power in factor markets. What is the
primary determinant of controlling wage and economic rent?
3 marks
61. Define two-part tariff. Also give examples to support your answer.
5 marks
62. How is a computer company’s demand for computer programmers a
derived demand?
5 marks
63. Differentiate between supply curve and demand curve. What are the non
price determining variables of supply?
(Marks: 1.5+1.5+2)


64. What is meant by rent seeking? What are the different ways of rent
seeking?
5 marks