Briefly explain how firms compete/set price under - a. Perfect competition b. Oligopoly

In recent years, the price of oil has fallen drastically. Explain if this is a result of: a. A drastic reduction in the cost of production (i.e. shift in the supply curve)? b. A fall in the demand for oil and oil products ( i.e. shift in the demand curve? c. Other factors ?(Hint: Search through the material on oil pricing in the global market)

QUESTION 1 How does the macroeconomic environment affect the firm's decision making? Explain briefly the important variables influencing business activities.

QUESTION 2 What are the main components of Aggregate Demand? Which components are more volatile than others? Explain.

QUESTION 3 What determines the foreign exchange rate? Discuss critical factors which may have caused the recent depreciation of the Malaysian Ringgit.