Examen

Principles of Microeconomics

1. Find and describe an example of Monopoly in Omani economy. In your answer you shall mention: a) Definition of Monopoly and its main characteristics and conditions. b) Name the industry where the monopoly exists. c) Provide proofs that named industry has monopoly with reference to characteristics and conditions stated in (a). 2. How was De Beers able to control the world price of diamonds even though it produced only 45 percent of the diamonds? What factors ended its monopoly? What is its new strategy for earning economic profit, rather than just normal profit? 3. Give an example of Monopolistic competition from the Omani Economy. Justify your example by explaining and comparing with all the features of monopolistic competition. 4. Find and provide example of Cartel as a type of Oligopoly. Has any cartel ever existed in all times in any country? a) Define Oligopoly and briefly describe its main conditions b) Define Cartel and briefly describe the main aims of cartel c) Describe and explain the outcomes of Cartel related to 2 areas: d1) outcomes for sellers (good/bad, gain/loss) d2) outcomes for consumers (good/bad, gain/loss)