1.A monopolist has the following demand functions for two segmented markets and cost function

Q1=64-0.8p1Q=36-0.2p2C=100+80Q

Required;

i. Calculate the maximum output and price of each market and the optimal profit of monopolist

ii. Verify whether the output maximizes profit

2. Discuss the characteristics of isoquants

3.write short notes on the following microeconomic concepts

i. Edge worth box

ii. Slutsky substitution effect

4. Using a diagram discuss the three stages of production. Explain why it is not technically efficient for the producer to produce at stage 1 and 3

5.Write notes on the equilibrium in perfectly competitive markets

6.Distinguish between short run and long run periods of production

7.Define price discrimination. Discuss the monopolist degrees of price discrimination

8. Using a well labelled diagram, discuss income effect and substitution effect of price change

9. State and explain whether the following statements is true or false

i. Consumer is at equilibrium when marginal rate of technical substitution is equal to ratio of commodity prices

ii. In cardinal utility approach what matters about utility is whether the consumer can rank consumption bundles according to the level of satisfaction