Get premium membership and access revision papers, questions with answers as well as video lessons.
Got a question or eager to learn? Discover limitless learning on WhatsApp now -
Start Now!
Bcom 102: Principles Of Microeconomics Question Paper
Bcom 102: Principles Of Microeconomics
Course:Bachelor Of Commerce
Institution: Chuka University question papers
Exam Year:TUESDAY 1/12/2015
EXAMINATION FOR THE AWARD OF DEGREECOF BACHELOR OF COMMERCE,BACHELOR OF COOPERATIVE MANAGEMENT AND BACHELOR OF ENTERPRENEURSHIP &SMALL BUSINESS MANAGEMENT
BCOM 102: PRINCIPLES OF MICRO ECONOMICS
STREAMS: BCOM Y1S1, BCOPY1S1, BENTRY1S1
DAY/DATE: TUESDAY 1/12/2015
TIME:2 HOURS
INSTRUCTIONS: Answer question one and any other two
Q1. (a) Distinguish the following terms as used in economics. (10marks)
(i)Microeconomics and macroeconomics
(ii) Indifference curve and Isoquant
(iii) Giffen good and inferior goods
(iv) Engel and demand curve
(v) Marginal rate of substitution (MRS) and Marginal rate of technical substitution.
(b) Using a well labelled diagram explain the resultant change in price quantity when;
(i) There is an increase price of a complimentary good. (3mrks)
(ii) There is an increase in tax by the government. (3marks)
(c) Explain the properties of Isoquant. (3marks)
(d) The following functions are for a given product.
Qa= - 30 +4p
Qb= 200 -6p
Required
(i) Identify with reasons the demand and supply functions. (3marks)
(ii)Compute own price elasticity of demand when equilibrium price increases to ksh.25. Interpret your results. (6marks)
Q2. (a) Given the following average cost function, AC=1800+18Q
(i) Compute the total cost. (1mark)
(ii) Fixed cost. (2marks)
(iii) Marginal cost. (2marks)
(b) Given the following production function, Q=3L²K³. Find the degree homogenity and comment the returns to scale. (5marks)
(c)Explain the assumption and weaknesses of the cardinal utility theory. (10marks)
Q3. (a) Using an indifference curve,explain the equilibrium point of a consumer. (5marks)
(b) Discuss the main determinants of elasticity of supply. (5marks)
(c) Using a well labelled diagram, explain the 3 stages of production clearly showing the stages you would advise the firm to produce in. (10marks)
Q4. (a) State the reasons as to why the demand curves slopes downwards from left to right. (3marks)
(b) With the help of a well labelled diagram, show and explain the short run and long run equilibrium condition of a monopolist. (7marks)
(c) A firm in a monopolistic competitive market has a demand curve given by P=4-0.2Q and its cost cost function C=100+80Q. Compute the firms equilibrium price, quantity and profit. (10 marks)
More Question Papers
Popular Exams
Return to Question Papers