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Hcob2505:Production Economics Question Paper

Hcob2505:Production Economics

Course:Bachelor Of Commerce

Institution: Meru University Of Science And Technology question papers

Exam Year:2013

QUESTION ONE (30 MARKS)
a) What are the isognant curve and isocost curve? Explain the produ them. (8 Marks) b) Explain the law of variable proportions. (12 Marks) c) Distinguish between the short-run and the long-run production function. (10 Marks)
QUESTION TWO (20 MARKS)
a) Distinguish between internal and external diseconomies of scale. (10 Marks) b) Distinguish between geographical and occupational mobility of labour and explain the factors that influence mobility of labour. (10 Marks)
QUESTION THREE (20 MARKS)
a) You are given the following short-run cost function:
Total Output TFC TVC 0 300 0 1 300 300 2 300 400 3 300 450 4 300 500 5 300 600 6 300 720 7 300 890 8 300 1100 9 300 1350 10 300 2000
Determine: Total Costs(TC), Average Fixed Costs (AFC), Average Variable costs(AVC), Average Total Costs (ATC), Marginal costs (MC) (10 Marks)
b) (i) Distinguish between the term comparative and absolute advantage. (4 Marks) (ii) Outline the assumptions behind the theory of comparative advantage (14 Marks) (iii) What do you understand by the term isocost line? (2 Marks)
QUESTION FOUR (20 MARKS)
a) Advice mangers and other stakeholders on the policies they can adopt in order to assist geographical mobility of labour. (5 Marks) b) Which are the causes of unemployment (12 Marks) c) Describe the properties of isognants. (3 Marks)
QUESTION FIVE (20 MARKS)
a) Using a diagram, explain the concept of economies of scale. (4 Marks) b) Highlight the factors causing internal economies of scale (8 Marks) c) Discuss eight characteristics of land. (8 Marks)

Hcob2505:Production Economics Question Paper

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