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Bus0161:Production Economics And Marketing Question Paper

Bus0161:Production Economics And Marketing

Course:Diploma In Agriculture

Institution: Meru University Of Science And Technology question papers

Exam Year:2014

QUESTION ONE (30 MARKS)
(a) Define the following terms as used in agricultural production and marketing: (i) Long run and short run time periods. (2 Marks) (ii) Marginal physical production (MPP) and Marginal Rate of Substitution (MRS) (2 Marks) (iii) Opportunity cost (1 Mark) (iv) Economies of production (2 Marks) (v) Elasticity of production (2 Marks) (vi) Production function (2 Marks) (b) State five characteristics of agricultural production. (5 Marks) (c) In preparation for the holiday season, a farm decides to increase its labour input from 4,000 hours per week to 4,100 hours per week. In return productivity increases from output. (5 Marks) (d) State five roles played by the government in agricultural marketing. (5 Marks) (e) State five reasons why the supply of agricultural products is low in Kenya. (5 Marks)
QUESTION TWO (15 MARKS)
Given the following production function = 5 + 0.052 0.003 (a) Complete the following table. (7 Marks) Input TPP APP MPP (x) (y) 0 10 20 30 40 50 60 70 80 Where; TPP = Total physical product APP = Average physical product MPP = Marginal physical product
(b) Plot TPP against x. (2 Marks) (c) Plot APP and MPP against x below the graph in (b). (4 Marks) (d) Indicate the regions of the production function. (2 Marks)
QUESTION THREE (15 MARKS)
(a) (8 Marks) (b) Explain the factors that determine the supply of agricultural products. (7 Marks)
QUESTION FOUR (15 MARKS)
Using isoquant and isorevenue curves, explain the least cost combination principle. (15 Marks) QUESTION FIVE (15 MARKS)
this statement in relation to key production problems. (15 Marks)

Bus0161:Production Economics And Marketing Question Paper

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