ECON 101 SEU Microeconomics Competitive Market Questions
Question Description
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College of Administrative and Financial Sciences
Assignment 2
Course Name: MICROECONOMICS
Students Name:
Course Code: ECON101
Students ID Number:
Semester: 1st
CRN:
Academic Year: 1442-1443 H
Release Date: 31st October 2021- Deadline: 13th November, 2021 @23:59pm
For Instructors Use only
Instructors Name:
Students Grade: Marks Obtained/ 05
Level of Marks: High/Middle/Low
PLEASE READ THEM CAREFULLY
? This assignment is an individual assignment.
? Due date for Assignment 2 is 13/11/2021).
? The Assignment must be submitted only in WORD format via 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 your information on the cover page.
? Students must mention question number clearly in their answer.
? 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.
Assignment 2
Maximum Marks-05
Question 1
a. Explain the concept of Equilibrium Price in a perfectly Competitive Market and how it is
determined? [2 Marks]
b. Calculate the percentage change in equilibrium price if percentage change in quantity
demanded is 25%. Price Elasticity of Demand is 1.35 and Price Elasticity of Supply is
1.15. [1 Mark]
Question 2
Calculate the Total Variable Cost, Average Fixed Cost, Average Variable Cost, Average total
Cost and Marginal Cost in the table given below (All Cost are given in USD). [2 Marks]
Labor
(No of
workers)
0
1
2
3
4
5
Output Total
(Number Fixed
of units) Cost
0
150
1
150
5
150
8
150
10
150
11
150
Total
Variable
Cost
0
100
Total
Cost
Average
Fixed
Cost
Average
Variable
Cost
Average
total
Cost
MC
25
37.5
55
650
Purchase answer to see full
attachment
Tags:
microeconomics
competitive market
equilibrium price
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