Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
    1. Short-run - numerical
    2. Short-run - short-answer
    3. Long-run - short answer
    4. Cost theory - numerical
    5. Cost theory - short-answer
    6. Costs and cost curves - self-test questions
    7. Revenues - numerical
    8. Profit maximisation - short answer
    9. Revenue and profit - self-test questions
    10. Perfect competition - numerical
    11. Perfect competition - short answer
    12. Perfect competition - self-test questions
    13. Monopoly and oligopoly - short answer
    14. Monopoly - short answer
    15. The model of monopoly - self-test questions
    16. Economic efficiency - short answer
    17. Oligopoly - short answer
    18. Price discrimination - short answer
    19. Theory of firm - essay
    20. The big giveaway
    21. Fixing it transparently
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Long-run - short answer

Question 1

Explain why all the firms in an industry within a single economy are not all the same size.

Question 2

Explain why firms are bigger in some industries than others.

Question 3

Explain how full exploitation of the benefits of economies of scale and the division of labour can result in a firm having to become international/multinational.

Question 4

An industry has 12 firms that operate within it. The market shares of the top 6 firms in 2002 are given below.

Calculate the 3, 5 and 6 firm concentration ratios (the percentage market share accounted for by the top 3, top 5 and top 6 firms) for this industry.

Question 5

An industry has 24 firms that operate within it. The sales value of the top 6 firms in 2002 is given below.

The industry is worth $24 million per year

Calculate the 3, 5 and 6 firm concentration ratios for this industry.

Question 6

Explain three economies and three diseconomies of scale that may affect a firm.

Question 7

Explain the term 'capital intensive' firm.

Question 8

Why do capital-intensive firms tend to be large in relation to the size of the market they are in?

Question 9

Explain the term 'minimum efficient scale of production'.