College of Administrative and Financial Sciences Assignment 2 Microeconomics (ECON101) Deadline for students: (31/10/2022@ 23:59) Course Name: Microeconomics Student’s Name: Course Code: ECON101 Student’s ID Number: Semester: 1 CRN: 11971 Academic Year: 2022-23 SEM-1 For Instructor’s Use only Instructor’s Name: Dr Ghazala Aziz Students’ Grade: /10 Level of Marks: Instructions – PLEASE READ THEM CAREFULLY ❖ This assignment is an individual assignment. ❖ The Assignment must be submitted only in WORD format via the allocated folder. ❖ Assignments submitted through email will not be accepted. ❖ Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page. ❖ Students must mention question numbers clearly in their answers. ❖ Late submitted assignments will NOT be entertained. ❖ Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. ❖ All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted. (Don’t change the cover page format.) (Total Marks: 10) [Course learning outcomes covered: (LO1.1)] Assignment Questions: Q1. You have been hired as an economic consultant by a price-taking (a perfectly competitive) firm that produces T-shirts. The firm already has a factory, so it is operating in the short-run. The price of T-shirt is $9, the hourly wage is $24, and each T-shirt requires $1 worth of material. The following table shows the relationship between the number of workers and output of T-shirts. Workers Output Labor cost Material cost Fixed cost Total cost Marginal cost 10 5 11 29 12 41 13 47 14 50 15 52 $2 $2 $2 $2 $2 $2 a. Fill in the blanks in the table. (3 points) b. What is the profit maximizing output? [ students may use marginal approach] (1 points) Note: For answering question-1 (a) and (b) students are required to show all possible calculations. Q2. See around you and pick up a firm which is either dominating the market or trying to create monopoly. • • • (a) Write in brief about the firm chosen and explain how the firm is trying to create a monopoly or dominating the market? (2 points) (b) Elaborate your opinion, why we as a society should worry about a firm trying to create a monopoly? (2points) (c) Discuss some policy options a government could have to intervene in such market and prevent the monopoly creation. (2points)
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