Question 1:

1) Consider the four market structures. In which market structure are there many firms producing differentiated goods?

Perfect Competition

Monopolistic Competition

Oligopoly

Monopoly

2) Consider the four market structures:

(1). Perfect competition

(2). Monopolistic competition

(3). Oligopoly

(4). Monopoly

In which market structure(s) will we see firms that are generally not considered competitive and may have a large amount of market power to set their own prices?

(1) only

(1) and (2)

(4) only

(3) and (4)

(2) and (3)

3) Consider the four market structures:

(1). Perfect competition

(2). Monopolistic competition

(3). Oligopoly

(4). Monopoly

Entry barriers are seen in which market structure(s)?

(1) only

(1) and (2)

(4) only

(3) and (4)

(2) and (3)

4) Consider the four market structures:

(1). Perfect competition

(2). Monopolistic competition

(3). Oligopoly

(4). Monopoly

In which market structure(s) are there most likely to be large economies of scale?

(1) only

(1) and (2)

(4) only

(3) and (4)

(2) and (3)

Question 2:

NB Construction is bidding on a project whose costs are divided into $30,000 for start-up and $260,000 for the first year evenly distributed over 12 months. If interest rate is 1% per month, what is the present worth of the costs?2 x 2 matrices over R, considered as a group with respect to multi- plication. In (a)-(e) below, determine whether the given subset is a subgroup of GL(2, IR). (a) The subset consisting of matrices with determinant 1. (b) The subset consisting of matrices of the form (ba ) for a re number a. (c) The subset consisting of (non-singular) triangular matrices. (d) The subset consisting of those (non-singular) matrices where matrix entries are integers. (e) The subset consisting of those (non-singular ) matrices wheA Moving to another question will save this response. Question 3 The term differential cost refers to: A cost which continues to be incurred even though there is no activity. A cost which does not involve any dollar outlay but which is relevant to the decision-making process. A difference in cost which results from selecting one alternative instead of another. The benefit forgone by selecting one alternative instead of another. 1 Moving to another question will save this response.Question 2 CO2, PO11, C2 In economics, interest can be defined as money paid by a borrower to a lender for a credit or a similar liability. Whereas, interest rate is defined by the interest paid over a time period expressed as a percentage of principal. Based on these fundamental understandings, answer all following questions; i. What is the different (by definition) between simple and compound interest? (1 marks) ii. Calculate the amount deposited 1 year ago to have RM5000 now at the interest rate (ROR) of 10% per year. Calculate the amount of interest earned during this time period (4 marks)