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What happens to the equilibrium position if following incidents are occurred?
i. If consumer income increases.
ii. Number of buyers in the market decreases
a)What is market failure? Why do markets fail? Why is market failure common in
developing countries? Discuss.
b) What role do “barriers to entry” play in the Structure-Conduct-Performance theory?
Explain.
c) Based on pros and cons discuss the differences between the three integration models.
d) Discuss the nature of agricultural marketing from the small-scale and commercial
farming perspective and describe advantages and disadvantages that exist in each
case. Provide four types of satisfaction that will occur through the marketing in both
cases of farming
If a higher price for good X causes a decrease in the demand for good Y, the cross elasticity value for the two goods would be?
A. negative. B. equal to zero. C. positive. D. possibly negative, positive, or zero, but there is not enough information to decide.
please provide arguments against every option.
Given the utility function U =10Q1Q2 and relative prices of P1= ₦20, P2 = ₦10 and consumer money income of ₦400. You are required to determine the units of each commodity to consume at the equilibrium point.
Below is the hypothetical data on the costs of production in a perfectly competitive firm.
Output Average variable cost
1 500
2 460
3 400
4 420
5 420
6 450
7 490
8 537.5
If the cost of the firm before operation is 600;
a) Calculate the Total Cost, Marginal Cost, Average Cost, Average Fixed Cost.
b) Explain why Marginal Cost of the firm rises after the 4th output.
c) At what output level is cost efficient for the firm and why?
d) With the aid of a diagram, explain the profit maximizing condition for a firm.
1. Write an account of Katrina’s (a Russian – socialist country) visit to Malaysia (mixed economy / capitalism), imagine her visiting Mid Valley or any shopping centre in KL, on a shopping excursion. How would she describe her experience?
Based on your knowledge of command / socialist economy, describe her experience (comparing Malaysia & Russia) when shopping here.
You may use any of the criteria’s below to make your comparison:
i. Ownership of factors of production
ii. Incentives
iii. Scarcity / choice
iv. 3 basic economic questions – what, how, for whom to produce
(a) What do we mean by a perfectly competitive market? Do you think that the example of ECG/NetCo fits this description? Is there another type of market that better characterizes the market for ECG/NetCo?
(b) What are the types of market structures? Critically examine each of the types by highlighting the characteristics, similarities (if any) and differences (if any).
a) Market research has revealed the following information about the market for chocolate bars: the demand schedule can be represented by the equation QD = 1600 – 300P, where QD is the quantity demanded and P is the price. The supply schedule can be represented by the equation QS =1400 + 700P, where QS is the quantity supplied. Calculate the equilibrium price and quantity in the market for chocolate bars.
b) Assuming the market price of chocolate is 0.5, given the equilibrium price calculated in (a) above, explain the possible market situation with the aid of a diagram.
make up an example of a supply schedule for apples and give an example of something that would shift this supply curve. Would a change in the price of apples shift this supply curve?
b) During the 1990s, technological advances reduced the cost of computer chips. How do you think this affected the market for computers? For computer software? For Typewriters?
C) Using supply and demand diagrams, show the effect of the following events on the market for sweat shifts.
i) A drought in Egypt damages the cotton crop
ii) The price of leather jackets falls
iii) All universities require students to attend morning exercise classes in appropriate attire.
Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. the inflation turns out to be higher that they both expected
a) Is the real interest rate on this loan higher or lower than expected? Explain your answer
b) Does the lender gain or lose from this unexpectedly high inflation? does the borrower gain or lose? Explain your answer
