1. Examine the essential difference between the theory of production in the short-run and in the long-run.
2. Explain the concept of deadweight loss.
3. Explain how the gradient of a demand curve is relevant to the computation of demand elasticity.
4. What is meant by an externality in production? Provide an example and illustrate it using an appropriate diagram.
5. For a given wage (w), identify the optimal level of output on a Marginal Product of Labour (MPL) curve. Why is this unlikely to be where labour productivity is greatest?
6. What is meant by a Nash Equilibrium and what are its implications for competition?
7. What explanation exists to justify the textbook representation of U-shaped cost curves in the theory of production?
8. Evaluate the case for government regulation of monopoly. What solutions would you propose and why for: i) monopolies generally; and ii) natural monopoly in particular?