1. What do you mean by opportunity cost?

2. Distinguish between explicit and implicit costs.

3. Explain the shape of AFC, AVC and AC.
4. Why is the LAC called ‘ the envelope of SACs’?
5. Distinguish between economies and diseconomies of scale.
6. Distinguish between returns to a factor and returns to scale.
7. Discuss the profit and loss conditions of a perfectly competitive firm.
8. Explain the long run equilibrium of a perfectly competitive firm.
9. “ In a perfectly competitive market, all firms are price takers”- Comment on the
statement.
10. In a perfectly competitive firm, explain why P=AR=MR.
11. What do you mean by product differentiation?
12. Explain the idea of non-price competition under oligopoly.
13. What do you mean by collusive oligopoly?
14. Why is the demand curve indeterminate for an oligopolistic firm/ explain the kinked
demand curve of an oligopoly firm?
15. Explain in brief the main features of monopoly.
16. What do you mean by price discrimination?
17. Distinguish between perfect competition and monopolistic competition.
18. Derive the long run supply curve of a perfectly competitive firm.
19. Explain the equilibrium pricing and output decision of a monopoly firm.
20. Why do you think a monopolistic firm operates with excess capacity?
21. For a perfectly competitive firm, distinguish between shut down point and break- even
point.
22. Explain the concepts of positive and negative externality along with examples.
23. “Under market failure, a perfectly competitive firm either over produces or under
produces than the social optimum output”- Defend or refute this statement.
24. Write brief notes on:
 Price discrimination under monopoly
 Monopolistic competition
 Marginal cost pricing
 Peak load pricing
 Multi product pricing
 Transfer pricing