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

Perfect competition - short answer

Question 1

Explain why a market for shares may be considered to approximate perfect competition.

Question 2

Is it possible for a firm in perfect competition to make supernormal profits?

Question 3

A firm in a perfectly competitive industry finds that it is trying to sell its product at a price above the prevailing market price. What can it do about the situation?

Question 4

What does the term 'freedom of entry and exit' to the market mean?

Question 5

Draw and explain the models for a firm and an industry in a perfectly competitive market in the long run.

Question 6

Will you find advertising in a perfectly competitive industry?

Question 7

It is an assumption of perfect competition that, in the long run, no firm makes supernormal profits, only normal profit. Does that mean that all firms in perfect competition make the same level of profit?

Question 8

Examine the data below, which is for 4 different firms.

Revenue data (£k) for four firms

All of the firms are in perfectly competitive industries except?

Question 9

Discuss the main problems with perfect competition.

Question 10

Why is the existence of perfect competition unlikely in the real world?