Paper 1 Diagrams

Question 1

Show a perfectly competitive market and firm in equilibrium

Answer 1

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Question 2

Show a perfectly competitive market and firm in short run disequilibrium

Answer 2

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Question 3

Show how a monopoly with economies of scale can produce at lower prices and higher output than a competitive market that does not enjoy such economies.

Answer 3

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Question 4

Compare an inefficient public sector firm with an efficient but profit maximising privatised oligopoly.

Answer 4

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Question 5

Show a labour market in equilibrium.

Answer 5

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Question 6

Show the impact of a trade union in a labour market.

Answer 6

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Question 7

Draw the impact of a price cap on a market.

Answer 7

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Question 8

Show the negative externalities associated with a demerit good.

Answer 8

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Question 9

Show the positive externalities associated with a merit good.

Answer 9

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Question 10

Show the welfare loss associated with negative production externalities.

Answer 10

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Question 11

Show the welfare loss associated with negative consumption externalities.

Answer 11

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Question 12

Show the welfare loss associated with positive consumption externalities.

Answer 12

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Question 13

Show the impact of a tax and illustrate the consumer and producer incidence.

Answer 13

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Question 14

Show the impact of a subsidy and illustrate the consumer and producer benefit.

Answer 14

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Question 15

Show the impact of a trade union in a monopsony

Answer 15

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Question 15

Draw a game theory matrix for two oligopolistic firms.

Answer 15

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Question 16

Draw a monopsony diagram to show how employees get paid lower in a monopsony as opposed to a competitive market.

Answer 16

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Question 17

Draw a third degree price discrimination diagram.

Answer 17

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Question 18

Draw and explain a natural monopoly diagram

Answer 18

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Question 19

Draw a diagram that shows discrimination in the labour market

Answer 19

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Question 20

what is regressive tax?