Bus061:Farm Accounting Question Paper
Bus061:Farm Accounting
Course:Diploma In Agriculture
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE – (30 MARKS)
a. Define production function and explain the three ways of presenting the production function. (5 Marks) b. List the assumptions of the production function. (5 Marks) c. Distinguish between variable and fixed costs. (5 Marks) d. By use of relevant diagram, distinguish between iso-cost and budget line. (5 Marks) e. List the properties of a good packaging material. (5 Marks) f. Highlight the characteristics of Agricultural products. (5 Marks)
QUESTION TWO – 15 MARKS
Given that a given level of output Q can be produced using various combinations of factor inputs X1X2.
X1Kg 37 20 13 11 8 6.5 4 2 X2Kg 10 20 30 40 50 60 70 80
Required:
a. Draw an iso-quant and an iso-cost, given that Px1=Ksh60, PX2=Ksh30 (10 Marks) b. Estimate the optimal combinations of X1X2 units that minimizes costs of production. (3 Marks) c. Calculate the least cost. (2 Marks)
QUESTION THREE – 15 MARKS
You are provided with the following possible output combinations of products Y1, Y2. Given that the price of Y1=16$, and Y2=39$.
Output Y1 0 7 12 18 22 25 30 Output Y2 48 49 37 30 20 11 0
2
Required:
a. On a suitable grid plot Y2 against Y2. (8 Marks) b. Using a suitable Iso-revenue curve establish the optimal Y1, Y2 combinations. (4 Marks) c. Calculate the optimal revenue possible. (3 Marks)
QUESTION FOUR – 15 MARKS
Discuss the monopolistic market in the following areas:
a. Sources of monopoly power. (4 Marks) b. Characteristics (5 Marks) c. Profit maximization (6 Marks)
QUESTION FIVE – 15 MARKS
a. Explain the importance of grading of agricultural products. (8 Marks) b. Explain giving examples the 4-ps in marketing. (7 Marks)
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