Answer ALL questions Question 1 A restaurant wants to set up a new outlet in another town. As a business consultant, you have been asked to evaluate the decision. Using the concepts of scarcity, choices and opportunity cost, explain this decision to the business owner. [30 marks] Question 2 The table below depicts the demand and supply for air conditioners. (a) Based on the table above, determine the price and quantity at equilibrium. [4 marks] (b) Calculate the total revenue at equilibrium. [4 marks] (c) Due to the current heatwave, the demand for air conditioners increases by 3000 units at each price level. Determine the new price and quantity at equilibrium. [8 marks (c) Calculate the new total revenue. [4 marks] Question 3 Using examples of actual firms in Malaysia, explain the different characteristics of firms in a competitive versus monopolistic market. [50 marks]