Question 1: (8 marks)

Classify these firms into adequate market structure and explain your classification. (8 marks)

Sporting and athletic goods (2 marks)

This Type of industry has monopolistic competition structure because in this type of industry there are very large no. of buyer and seller, and companies also need to advertise their products to get good results.

Fresh flower retailing (2 marks)

This Type of industry has monopolistic market structure because all the florists are selling differentiated products and they can create small barriers for others as well.

Petrol service station in Abu Dhabi. (2 marks)

This is an example of a monopoly market structure. ADNOC is the UAE's leading retail fuel service station operator and the only retail fuel operator in Abu Dhabi. Moreover, it is the leading marketer and supplier of energizes to industry, government, and military clients throughout the UAE, with a particularly strong presence in Abu Dhabi.

Telecom operator in UAE (2 marks)

This is an example of an oligopoly market structure. The Emirates Telecommunications Company (Etisalat) was the UAE's sole phone and telecommunications provider from 1976 to 2006. Although there were some exceptions, such as complimentary zones and recent lodging developments, Etisalat had a monopoly on business and individual telecommunications services for the majority of the UAE, but now it is an oligopoly with the addition of Du Telecommunication and other companies.

Question 2: (6 marks)

Suppose that ABC firm has 100 hours of labor a day used to produce snacks and swimming classes.

The data below presents the maximum quantity of each good produced.

Labor Swimming classes snacks (hours) (classes per week) 0 0 or 0 20 4 or 10 40 8 or 18 60 12 or 24 80 16 or 28 100 20 or 30\fNumber Total Value of Marginal Wage per Prot Margin of Output Product of Labor Product of Labor Worker W (PM)PM=VMPL-Wage 10 X 60 = 600 600 300 = 300 workers 10 X 50 = 500 500 300 = 200 150110_ 0 10x40=400 400300=100 32 _ 180150 10x30 =300 300300: 0 43 = 0 200180_ 0 10x20=200 200300=100 54 _ 210200_ 0 10x10=100 100300=200 65 _ (0.5x18= 9 marks) D