Economics of Orgs Market and Govt

REVISION QUESTIONS FOR ECONOMICS OF ORGANISATIONS, MARKETS AND GOVERNMENT. (Sheet 1)

This is the first of two lists of revision questions. The examination will be based on questions similar to some included below or on the next sheet which will follow next week.

Some of these questions will be considered in seminars.

Wise students will research and prepare answers to these questions!

The examination will be three questions out of five to be answered in three hours.

In the examination questions will be marked out of 25 marks and the total mark changed into an overall percentage so that the class (2.2, 2.1 and so on) can be given.

1) Discuss how firms in oligopoly are likely to compete with each other.

2) What is meant by the “Regional Problem”? (4 marks)

Why does it matter? (6 marks)

What strategies might governments adopt if they wish to reduce the impact of the

Regional Problem? (15 marks)

3) The average size of British hospitals as measured by the number of beds and the size of

breweries as measured by volume of beer produced has increased in recent years. Further

education colleges in Nottingham have merged to form larger colleges. All this in order to

obtain economies of scale.

What are economies of scale? Explain their importance using examples from any sector

of the economy. (15 marks)

If there are so many benefits to large scale why do small firms still survive? (10 marks)

4) “When a government intervenes to try to correct a problem of market failure, the problem

of government failure may sometimes result” Explain this statement.

5) What benefits do economists see in competitive markets? (8 marks)

What is “competition policy” and what are the targets of competition policy? (12 marks)

What organisations in the U.K. are concerned with competition policy? (5 marks)

6) An...