Students are advised to make their work clear and well presented. This

Students are advised to make their work clear and well presented. This also includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submitted assignments will NOT be entertained.

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Assignment 3 Maximum Marks-05

Question 1:

A monopoly occurs when there are barriers entering the market. List 3 types of these barriers with explanation and example. (1 Mark)

Fill the following table for a monopolist firm. (1 Mark)

Marginal revenue

Total revenue

Output

Price

0

$100

1

$85

2

$70

3

$55

4

$40

5

$25

Draw the demand curve and the marginal revenue curve for the above table. And explain the relationship between the marginal revenue and the price. (1 Mark)

Question 2.

Explain the effects of low price-guarantee on the price. (1 Mark)

Give reasons, when average cost increases as the total output increases for an increasing cost industry. (1 Mark)