Show and discuss using a diagram how overproduction results in deadweight loss. Discuss how
this issue can be addressed.

Question 2
Discuss how changing input prices will impact the slope and position of the isocost and isoquant.

Question 3
A monopolist will always make a profit. Using diagrams, discuss this statement.

Question 4
Discuss the implications of a perfectly competitive market equilibrium for economic efficiency
and surplus.

Question 5
Discuss using diagram (s) how producing output less than competitive level affects the welfare of
society.

Question 6
Derive the long-run average cost curve using diagrams. How is the long-run average cost curve
related to the short-run average cost curves? What explains the shape of the long-run average cost
curve?

Question 7
Discuss the welfare implications of first-degree price discrimination.

Question 8
Discuss the three types of isoquants.

Question 9
How will a change in income affect the slope and position of the indifference curve and budget
line?

Question 10
Using diagram (s), discuss how price adjustment in the market will solve surplus or shortage.

Question 11
Discuss the significance of price elasticity of demand for firms engaging in third-degree price
discrimination