(a) Differentiate between perfect competition and monopoly.[10 marks]

(b) Oligopoly has characteristics which prove to be increasingly realistic in today's world. What are the salient characteristics of oligopoly? [10 marks]

(c) A monopoly can only exist if there are barriers to entry. Explain with examples, what is meant by the term "barrier to entry".

(d) A perfectly competitive firm is making abnormal profit in the short run. With aid of diagrams, explain and illustrate how the long run equilibrium condition of this firm is reached. ( 10 marks]

(e) A monopoly firm producing chemicals faces a downward sloping Average and Marginal Revenue lines. Using these assumptions, explain, with the aid of a diagram, the "profit maximizing rule" for a monopoly firm, showing the short run monopolist's profit. ( 8 marks)

(f) With the aid of diagrams, compare and contrast the long-run equilibrium position of a monopoly with that of a perfectly competitive firm, paying special attention to efficiency. [15 marks]

(g) In Mauritius we observed that the Central Electricity Board and Central Water Authority run as a monopoly as they are sole provider of electricity and water respectively to the general public. Is the monopoly in the public interest? Discuss with the help of diagram. [12 marks]

(h) Illustrate via a diagram the short run and long run equilibrium of firms under

monopoly situation. [5 marks]