Question 1 (12 marks)
Question 2 (12 Marks): Choose one question (either Set A or Set B)
Let the price on the market be given by
Suppose there is only one firm in the market with marginal cost equal to 10.
Suppose there are two firms on the market with marginal costs 6 and 9. Both firms are profit-maximising players on the market.
|Price (£)||Marginal (private) costs (£)||Marginal external benefit (£)||Marginal social cost (£)|
Question 3 (12 points)
The difference between rich and poor is becoming more extreme, and as income inequality widens the wealth gap in major nations, education, health and social mobility are all threatened — Helene D. Gayle
“The Coronavirus will be a catastrophe for the Poor. Economic activity has ground to a halt as borders shut, cities lock down, and people retreat behind closed doors to stem the spread of COVID-19. Workers are being laid off by the millions.”
Question 4 (12 points)
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