1. Briefly explain how firms compete/set price under - a. Perfect competition b. Oligopoly

2. What is meant by price discrimination? What are the conditions to make price discrimination effective? Discuss answers with examples from the Airline Industry.

3. In recent years, the price of oil has fallen drastically. Explain if this is a result of: a. A drastic reduction in the cost of production (i.e. shift in the supply curve)? b. A fall in the demand for oil and oil products ( i.e. shift in the demand curve? c. Other factors ? (Hint: Search through the material on oil pricing in the global market)