ECO401 Mid Term Current Paper (Dec 2010)

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ECO401 Mid Term Current Paper (Dec 2010)
most of the mcqs from elasticy chapter
Explain the two main theories of production regarding time.5marks
A. What are the effects of price discrimination on the profit and loss of a firm?
B. There are certain conditions for price discrimination to hold. Discuss those conditions. 5marks


Assuming that supernormal profits can be made in the short run in a monopolistically competitive industry; will there be any difference in the long-run and short-run elasticity of demand?3 mark

Why the income consumption curve is often drawn as positively sloped at low levels of income?
3 marks

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