1. Write brief notes on Oligopoly (as a guide, state what this market structure is, its assumptions, how profit is maximised and the advantages and disadvantages of oligopoly). How does the leader firm emerge?

2.a) What do you understand by the term normal and Super normal profit?

b) Describe two other business objective other than profit maximization which might be pursued by a firm.

c) State the consequences for the firms profits of the following

i) an increase in interest rates

ii) a successful advertising campaign.

3. Examine the circumstance in which a monopolistic market may be preferable to a competitive one.

4. Indicate by means of graphs the long-run equilibrium of a

a) Perfectly competitive firm.

b) Monopoly

5.Explain, using examples, why average costs may vary according to the level of output.

6.Give 5 ways in which producers or sellers try to differentiate products