S-2

b) Derive a demand curve using indifference curve analysis.

c) Explain why indifference curves do not cross each other?

S-3

b) Suppose, the fixed cost of a factory is Tk.10000, the selling price is Tk.4 (per unit) and the average variable cost is Tk.2, so calculate the breakeven quantity.

c) Graphically explain the law of diminishing marginal returns.

S-4

b) What are the basic differences between government monopoly and market monopoly?

c) Briefly discuss the short run equilibrium of a firm under perfectly competitive market when P < AVC < ATC.