”Question 1” (Production & Cost) ”Allocated Mark = 10 marks”
”Question 1” (Production & Cost) ”Allocated Mark = 10 marks”
⦁ Answer the questions below.
Number of
Workers
Output MPL APL
0 0
1 75
2 135
3 300
4 455
5 590
6 685
7 700
8 735
9 705
10 700
The table above shows the association between output and number of workers for a
factory with a fixed size of plant.
⦁ Calculate the marginal product of labour (MPL) (2 marks)
⦁ Calculate the average product of labour (APL) (2 marks)
⦁ Find the three stages of production (2 marks)
b. Given the Production Function Q = 80X + 45X2 – X3, where Q = Output and X = Input
⦁ What is the Marginal Product (MP) when X = 3? (2 marks)
Note: Show the formula of MP and calculation to get the full marks
⦁ What is the Average Product (AP) when X = 5? (2 marks)
Note: Show the formula of AP and calculation to get the full marks
”Answer”
”Student Mark: ”
”Question 2”
(Managerial decisions in competitive markets) ”Allocated Mark = 10 marks”
⦁ Answer the questions below using the cost curves for the perfect competitive firm shown in the following graph:
⦁ If price is $60 per unit of output. The manager should produce ________ units to maximize profit (2 mark)
⦁ Find the average total cost (ATC) $________ (2 marks) for this output (refer to output level, your answer, in part i), total cost is $________ (3 marks)
⦁ The firm makes a profit of $________ (3 marks)
”Answer”
”Student Mark: ”
”Question 3”
(Managerial decisions in monopoly market) ”Allocated Mark = 12 marks”
Answer the questions below using the short-run profit maximizing equilibrium under monopoly structure:
⦁ What is the price (p) and output (q) level for profit maximization under monopoly structure? (3 marks)
⦁ Find the total revenue (TR) for monopoly firm (refer to rectangle OABE) (3 marks)
Note: Show the formula and calculation to get the full marks
⦁ Find the total cost (TC) for monopoly firm (refer to rectangle ODCE) (3 marks)
Note: Show the formula and calculation to get the full marks
⦁ Find total profit (or loss) for monopoly firm (refer to rectangle ABDC) (3 marks)
Note: Show the formula and calculation to get the full marks
”Answer”
”Student Mark: ”
Question 4
(Strategic decisions in oligopoly market) ”Allocated Mark = 8 marks”
Ronaldo
Don’t confess Confess
Gonzalo Don’t confess A
3 years, 3 years B
15 years, 1 year
Confess C
1 year, 15 years D
5 years, 5 years
Mr. Abdullah is a police officer in Budaiya. He received a report about robbery activities. Based on investigations, there are two suspects (Ronaldo and Gonzalo) that may commits to this crime. Long story short, both suspects were put in separate rooms and be interrogated by Mr. Abdullah. As a smart police officer, Mr. Abdullah offers two options (don’t confess and confess) to Ronaldo and Gonzalo along with consequences. Table below show the outcomes if Ronaldo and Gonzalo choose either confess their actions or do not confess their actions
⦁ What is the suitable strategy that best describe “prisoner dilemma” above? (1 mark) Justify your answer! (3 marks)
⦁ What is the most likelihood of decisions will be made by Ronaldo and Gonzalo? (1 mark) In which quadrant? (1 mark) Why they think that the decision is the best option for them? Explain your answer! (2 marks)
”Answer”
”Student Mark: ”
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