1. ## Eco401 Economics Assignment 2 Deadline 9 July 2010

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)

(Note: In Q # 01 and 02, just draw graphs by yourself. Do NOT copy from any
source. NO need to write any irrelevant material or interpretation.)

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: (Marks: 2+2+1)
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP

eco401 2.jpg

(Note: Just calculate to the point in each part. NO need to write irrelevant
material or extra interpretation.)

2. ## Idea Solution for ECo401

solution 1.jpg

solution 2.jpg

Solution 3

Nominal GDP in 2009 = (200*10)+(150*110)=18500
Nominal GDP in 2010 = (250*15)+(170*155)=30100
Growth rate in nominal GDP=30100-18500/18500=62.70%