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Question 1 Explain the relationship between the law of diminishing returns and the concept of economies of scale.  
Question 2  
Explain with the use of diagrams where appropriate how perfect competition leads to allocative productive and dynamic efficiency.    
Question 3  
Illustrate with the use of diagrams how the profit maximising price and outpur for firms in a monopolistic competitive market structure is determined.  
Does the fact that monopolistically competitive markets do not achieve allocative or productive efficiency mean that there is a significant loss in economic well-being to society in these markets?    
Question 4  
What is a natural monopoly? If a firm is a natural monopoly, illustrate with the use of diagrams why is it is necessary to have the price set by a regulatory authority rather than by the market.   
Question 5  
Petro prices recently plummeted, discuss some of the reasons behind this development. 



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