Ministry of Education and Training SOCIALIST REPUBLIC OF VIETNAM

National Economics University Independence – Freedom – Happiness

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Faculty of Economics FINAL EXAM

Class: EMQI-K62 Date: /07/2021

Code 101
Course: Microeconomics
Time allowed: 60 minutes

Section A – Calculating exercises (50 Marks)

A firm in perfect competition market has VC (USD) = 2Q2 + 8Q, where Q is in units. When market price
is 48$, the firm is at break-even.
a. What is the firm’s producer surplus when the market price is 58 USD/unit?
b. What is the firm’s decision when the market price is 38 USD?
c. Assume that, there are 1000 firms in this market with identical cost functions (VC = 2Q2 + 8Q).
What is the market short run supply function?
d. Present all the above results on a graph.

Section B – Explain the following statement. You are recommended to apply graphs where
are applicable. (50 marks)
Vietnam has comparative advantages in producing labor intensive industries. That explains for major part
of its investment flows during the last 30 years. However, Vietnam gradually loses its comparative
advantage in those industries.

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