Explain the effects of low price-guarantee on the price.

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• This assignment is an individual assignment.
• Due date for Assignment 3 is 30/11/2021).
• The Assignment must be submitted only in WORD format via allocated folder.
• Assignments submitted through email will not be accepted.
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Assignment 3                                                                       Maximum Marks-05

Question 1:

1. A monopoly occurs when there are barriers entering the market. List 3 types of these barriers with explanation and example. (1 Mark)
2. Fill the following table for a monopolist firm. (1 Mark)

•  Draw the demand curve and the marginal revenue curve for the above table. And explain the relationship between the marginal revenue and the price. (1 Mark) 

Question 2.

1. Explain the effects of low price-guarantee on the price. (1 Mark)
2. Give reasons, when average cost increases as the total output increases for an increasing cost industry. (1 Mark)