ECF1100 Study Guide - Final Guide: Coase Theorem, Monopolistic Competition, Competitive Equilibrium
19 Jul 2018
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Week 12: unit revision part 1 weeks 7 - 9. Week 1-6 are not directly examinable because they were covered in the mid- semester test. The final exam for ecf1100 consists of 6 compulsory short answer questions. 10 marks each x 6 questions = 60 marks total worth 50% of the grade. [home > review > ungraded attempt: have a go with the practice exam, do(cid:374)"t (cid:374)egle(cid:272)t (cid:272)o(cid:374)te(cid:374)t fro(cid:373) weeks 1-6, not on exam but need to understand basic concepts. Question 2: cost curves [know how to illustrate it via graph: average total cost, average fixed cost, average variable cost, marginal cost, minimum points of intersection. Marginal benefit = p3, which is higher than the marginal cost (=p1). That leads to allocative inefficiency 2 marks. Bricklaying is a fiercely competitive industry with many small suppliers all offering similar products with similar costs. Suppose the market is initially at a competitive equilibrium.
