Microeconomics Answers

State the different ways in which the demand function can be represented

Consider the following normal form game:

1/2 ----L-----------R

U----(1,1)-------(-2,6)

D----(6,-2)------(-1,-1)

What difference does it make if the game is played only once or is repeated an infinite number of times? Show that, with infinite repetitions, an average payoff pair (2, 2) can be obtained if the players alternate between two different strategy pairs. Show that the average payoffs (2, 2) are also enforceable if the players follow a simple trigger strategy.

Explain one problem associated with using gross domestic product as a measure (8) of economic growth. Include in your answer a proposition of how to overcome the problem mentioned.

Choose any one of the tools from Question

4.1.1 and elaborate on the application of this tool in your country.

Explain the two (2) main tools of fiscal policy

Distinguish between the following market structures by examining three (3) characteristics each of firms in these market structures:

➢ Perfect competition

➢ Monopolistic competition

➢ Monopoly

Explain the long run average curve and how it relates to returns to scale. 

Define the following economic terms according to costs and production of a firm:

3.1.1 Total product

3.1.2 Average product

3.1.3 Marginal product