ECO401 Ass # 2 Solution

Question 01
Draw the graph showing that a perfectly competitive firm is making zero profit or normal profit in the market.(Marks: 5)

Question 02
Draw the graph showing that a monopoly firm is making super normal profits in the market. (Marks: 5)

Question 03
Consider a hypothetical economy which produces oranges and chicken.
Quantity and cost of both things are given in the table. Calculate the
following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)

Solution:-

• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500

• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100

• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
 

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

NOTE: - These Assignments OR Quiz are just for idea, so kindly don't copy it, after viewing it make your own. Thanks We always try our best to upload 100% correct solution BUT it is requested that you kindly review it before submission, please BEST OF LUCK, Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com