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Ben 3211/Aec 201: Intermediate Microeconomics Question Paper

Ben 3211/Aec 201: Intermediate Microeconomics

Course:Logistics And Supply Chain Management

Institution: Jaramogi Oginga Odinga University Of Science And Technology question papers

Exam Year:2015

JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY
SCHOOL OF BUSINESS AND ECONOMICS
UNIVERSITY EXAMINATION FOR THE DEGREE OF BACHELOR OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT
COURSE CODE: BEN 3211
COURSE TITLE: INTERMEDIATE MICROECONOMICS
TIME: 2HOURS
INTRUCTIONS
1. Answer question ONE (COMPULSORY) and ANY other 2 questions
2. Candidates are advised not to write on the question paper.
3. Candidates must hand in their answer booklets to the invigilator while in the examination room.
QUESTION ONE
a) Explain the Axioms of indifference curves theory. (6 marks)
b) Distinguish between implicit and explicit costs. (6 marks)
c) What is a linearly homogenous production function? (4 marks)
d) Distinguish between the short-run equilibrium and the long-run equilibrium for a perfectly competitive firm. (6marks)
e) Using relevant examples, explain the concept of a cartel. (4 marks)
f) Explain the concept of a stable equilibrium. (4 marks)
QUESTION TWO
The Kenya Power Company recently announced a power tariff reduction. Assuming that the Kenyan consumer consumes two commodities, power (y) and others (x) and that the price of others(x) and the income have remained constant; discuss in details the total effect of the reduction in electricity tariffs. Use a well labelled diagram to explain the effects. (20 marks)
QUESTION THREE
a) Discuss the different stages of the classical production function. (12 marks)
b) Why would a profit maximizing producer not operate in stage one of the production function?(8marks)
QUESTION FOUR
i. Prove that at equilibrium, the marginal cost curve, intersects the marginal revenue curve from below (8 marks)
ii. Discuss the effect of an increase in value added tax (VAT) on both the consumers and producers. Use well labelled diagram to illustrate your point. (12 marks)
QUESTION FIVE
a) Discuss the concept of Pareto efficiency in production. (12 marks)
b) Explain the concept of stable equilibrium. Use a well labelled diagram to explain your point.
(8 marks)

Ben 3211/Aec 201: Intermediate Microeconomics Question Paper

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