- MARKET STRUCTURES AND MARKET FAILURE (Unit 5-6)

a) Explain why firms in perfectly competitive markets called price-takers? ( 5 marks)

b) Do the assumptions of the perfectly competitive model describe all real-world markets? Explain. ( 6 marks)

c) Explain why imperfectly competitive markets lead to inefficient outcomes? ( 6 marks)

d) Explain the four different types of barriers to entry in monopoly. (8 marks)

e) The table below represents the demand Island Cement which has a monopoly in the sale of cements. Complete the table and calculate total revenue and marginal revenue for the levels of output given. (12 marks)