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:2012
QUESTION ONE – (30 MARKS)
(a) Define the following as used in economics. (10 Marks) (i) Production function (ii) Law of diminishing marginal returns (iii) Imperfect substitutes (iv) Marketing mix (v) Chain of distribution (b) Briefly explain any three production relations. (6 Marks) (c) Explain the components of a market. (6 Marks) (d) Explain the importance of packaging of Agricultural produce. (8 Marks)
QUESTION TWO – (15 MARKS)
(a) Explain the characteristics of the perfect competitive market. (7 Marks) (b) Explain the 4-Ps in marketing (8 Marks)
QUESTION THREE – (15 MARKS)
Give that a given level of output Q can be produced using various combinations of factor inputs X1,X2
X1 Kg 36 21 14 10 8 6.5 5 4 X2 Kg 10 20 30 40 50 60 70 80
2
Required:
(a) On a suitable scale draw an iso-quant and an iso-cost, given that PX1=Ksh20, PX2= Ksh7. (10 Marks) (b) Estimate the optional combinations of X1, X2 units that minimizes costs of production. (2 Marks) (c) Calculate the least cost. (3 Marks)
QUESTION FOUR – (15 MARKS)
(a) Using a relevant illustration explain the stages of the production function. (12 Marks) (b) In order to tell the most profitable level of output what other information is required. (3 Marks)
QUESTION FIVE – (15 MARKS)
Explain monopoly under the following:
(a) Sources of monopoly power. (4 Marks) (b) Monopoly characteristics (4 Marks) (c) Profit maximization (7 Marks)
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