BACHELOR OF COMMERCE YEAR 1 ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE 10.2.2 ECONOMICS 1: ASSIGNMENT 2 [100] QUESTION ONE (30) 1.1 Discuss the relationship between the three short-run total cost curves. Use a diagram to motivate your answer. (15) 1.2 Explain the three categories of returns to scale relating to the long-run average cost curve. (15) QUESTION TWO (25) 2.1 Illustrate and examine how the individual supply of labor curve demonstrates the way an individual divides his/her time between work and leisure. (13) 2.2 Distinguish between income elasticity of demand and cross price elasticity of demand. Include in your answer a provision of their formula. (12) QUESTION THREE (25) 3.1 Explain the three possible prot maximizing positions of perfectly competitive firms in the short-run. (15) 3.2 Describe the nature of the goods produced by a monopolistically competitive firm. (10) QUESTION FOUR (20) 4.1 Distinguish between the short-run aggregate supply curve and the long-run aggregate supply curve. (14) 4.2 Discuss one (1) reason for the downward sloping aggregate demand curve. (6) REGENT BUSINESS SCHOOL (RBS) JANUARY 2021 31