Microeconomics C1 Dec 2012 Q2 Differentiate between positive economics and normative economics. Exp ain t!e re ations!

ip between scarcit" and opport#nit" cost. Sept 2011 Q2 (c) Distin%#is! t!e fo owin% terms& i) ii) iii) 'orma and inferior %oods (ositive and normative economic statements )icroeconomics and macroeconomics (4 marks) (4 marks) (4 marks) (4 marks) ($ marks)

Jan 2011 Q2 (b) (b) Distin%#is! between& i) ii) iii) *ocia ism and capita ism. (rice cei in% and price f oor. (ositive economics and normative economics.

(12 marks)

April/May 2010/2011 Q2 (a) Distinguish between positi e econo!ics" an# nor!ati e econo!ics"$ (% !ar&s)

*ept 2010+2011 Q2
(a) 'rie(ly e)plain the #i((erence between positi e econo!ics" an# nor!ati e econo!ics"$ (* !ar&s) April/May 200+/2010 Q2

(b) Differentiate between ,positive economics- and ,normative economics-. ($ marks)

January 200+/2010 Q2 (b) Distin%#is! between& (i) (ositive economics and normative economics. (4 marks)

(ii)
(c)

)icroeconomics and macroeconomics.

(4 marks)

*ept 200.+2010 Q2
Define t!e fo owin% economic concepts& (i) (ii) (iii) *carcit". )icroeconomics. (ositive economics.

($ marks)

May 200,/0+ Q2

b)

Distinguish between -positi e. an# -nor!ati e. econo!ies$

(% !ar&s)

January 200//200, b) Distinguish between -positi e econo!ics. an# -nor!ati e econo!ics.$ 0eb 200,/200+ a) Distinguish between -!icroecono!ics. an# -!acroecono!ics.$

(% !ar&s)

(1 !ar&s)

C1
/pri 2012 Q#estion 2 (a) 0it! examp es1 describe t!e FOUR (4) reso#rces #sed to prod#ce %oods and services. (12 marks)

Jan 2011 Q2 (a)

(b) 2ist and describe an" TWO (2) t"pes of reso#rces. (3 marks)

April/May 2010/2011 Q2 (b) 2ist the FOUR (4) (actors o( pro#uction$

(* !ar&s)

Sept 2010/2011 Q2
(b) 3ith e)a!ples4 brie(ly #escribe the (ollowing (actors o( pro#uction5 (i) (ii) (iii) 2an# 2abour 7apital (6 !ar&s) (6 !ar&s) (6 !ar&s) (4 marks)

Jan 200+/2010 Q2 (a) Describe t!e FOUR (4) reso#rces #sed to prod#ce %oods and services.

*ept 200.+2010 (a) 2ist and describe t!e FOUR (4) cate%ories of reso#rces. marks)
April/May 200+/2010 (a) 5rief " describe t!e FOUR (4) cate%ories of economic reso#rces. April/May 200,/200+ #) Distinguish between -labour. an# -entrepreneurship.$ Jan 200,/200+ c) Describe the 089: (*) types o( (actors o( pro#uction$

(4

(12 marks) (% !ar&s) (, !ar&s)

April/May 200//200, b) -;enerally4 econo!ists #i i#e resources into 089: (*) broa# categories.$ <)plain$ (+ !ar&s) Sept 200//200, c) Describe the 089: (*) (actors o( pro#uction use# to pro#uce goo#s an# ser ices$ (, !ar&s)

C1
Dec 2012 Q2 6sin% a bow7o#tward prod#ction possibi ities frontier (((8) c#rve1 i #strates and identif" t!e fo owin% events& (i) (ii) (iii) April2012 Q2 Differentiate between t!e strai%!t7 ine and bowed7o#tward prod#ction possibi ities frontier (((8). Sept 2011 Q2 (a) = (b) (a) Define prod#ction possibi it" frontier (((8). (c) (4 marks) /n advancement in tec!no o%"9 / decrease in nat#ra reso#rces9 / %rowt! in abo#r force. (3 marks) (3 marks) (3 marks)

Define t!e term ,an advance in tec!no o%"-. 6sin% a dia%ram1 describe t!e effect of an advance in tec!no o%" on t!e prod#ction possibi it" frontier. ($ marks) Exp ain t!e term increasin% opport#nit" cost. (: marks)

(d)

Jan 2011 Q2 (c) (c)6sin% a prod#ction possibi it" c#rve (((8)1 distin%#is! between prod#ctive efficienc" and prod#ctive inefficienc". (4 marks) April/May 2010/2011 (#) 9sing an appropriate #iagra!4 e)plain the concept o( opportunity cost$ (+ !ar&s) Sept 2010/2011 (c) Define (rod#ction (ossibi it" 8rontier (((8). Sept 200+/2010

(: marks)

(b)

;!e tab e be ow s!ows efficient combinations of two %oods1 comp#ters and cars t!at an econom" can prod#ce& Combination / 5 < D E (i) Computer (units) 400 :00 200 100 0 Car (units) 0 20 40 $0 40 (: marks)

Define prod#ction possibi ities frontier (((8).

(ii) (iii) (iv)

5ased on t!e tab e above1 p ot a ((8 dia%ram for t!e econom". (: marks) <a c# ate t!e opport#nit" cost of prod#cin% 20 #nits of car. (: marks)

Exp ain t!e t"pe of opport#nit" cost faced b" t!is econom". (2 marks) (:

April/May 200+/2010

(c) (i) Define ,opport#nit" cost-. marks)

(ii)

=ow does a prod#ction possibi ities frontier (((8) represent t!e opport#nit" cost>

(4 marks)
Sept 200,/200+ a) De(ine >ro#ucti e <((iciency$ ?ow #oes a >ro#uction >ossibility 0rontier (>>0) represent the pro#ucti e e((iciency@ (* !ar&s)

April/May 200,/200+ a) 9sing a pro#uction possibility cur e (>>7)4 #istinguish between -e((iciency. an# -ine((iciency. con#itions in ter!s o( pro#uction$ (/ !ar&s) b) 9sing a pro#uction possibility cur e (>>7)4 #escribe the relationship between scarcity an# choice$ (% !ar&s)

Jan 200,/200+ b) 9sing #iagra!4 e)plain the #i((erences between -straight line. an# -bowe# outwar#. pro#uction possibilities (rontiers (>>0)$ (12 !ar&s) April/May 2010/2011 (e) <)plain any TWO (2) (actors that shi(t the pro#uction possibilities (rontier (>>0) outwar#s$ (% !ar&s)

/pri 2012 Exp ain t!e fo owin% concepts& (i) (ii) (iii) *ept 2010+2011 (d) Exp ain t!e fo owin% concepts& (i) *carcit" (ii) ?pport#nit" costs (iii) Exc!an%e (: marks) (: marks) (: marks) *carcit"9 ?pport#nit" cost9 (rod#ctive efficienc". (: marks) (: marks) (: marks)

Jan 200+/2010

(c) 6sin% prod#ction possibi it" frontier (((8) dia%rams1 exp ain t!e fo owin% concepts&
(i) (ii) (rod#ction efficienc". (rod#ction inefficienc". (: marks) (: marks)

(iii) marks)

Economic %rowt!.

(:

April/May 200//200, a) 9sing the pro#uction possibilities (rontier (>>0) (ra!ewor&4 e)plain the (ollowing econo!ic concepts5 i) Scarcity (* !ar&s) ii) 8pportunity cost (* !ar&s) iii) >ro#ucti e e((iciency (* !ar&s) i ) <cono!ic growth (* !ar&s) Sept 200%/200/ Q*A b) 3hat is a >>0@ c)

(* !ar&s)

'ase# on the theory o( opportunity cost4 #istinguish between a straight line an# bowe# outwar#s >>0@ (% !ar&s)

C2
Dec 2012 Q: Distin%#is! between a c!an%e in demand and a c!an%e in @#antit" demanded. Jan 2011 Q6 (a) Exp ain t!e difference between aw of demand and aw of s#pp ". April 2010/2011 Q6 (a) Di((erentiate between change in Buantity #e!an#e#" an# change in #e!an#"$ (, !ar&s) ($ marks) ($ marks)

Sept 2010/2011 Q6 (a) Exp ain t!e difference between t!e aw of demand and t!e aw of s#pp ". ($ marks) Sept 200+/2010

(a) (b)

Define t!e aw of demand.

(: marks)

0it! t!e aid of a dia%ram1 brief " exp ain t!e differences between a movement a on% t!e demand c#rve and a s!ift in t!e demand c#rve. (4 marks)

April 200+/2010 Q6 (b) Distin%#is! between ,a c!an%e in demand- and ,a c!an%e in @#antit" demanded-. marks)

($

January 200+/10 (a) Define& (i) (ii) 2aw of demand 2aw of s#pp " (: marks) (: marks) (2 marks)

April 200+/2010 (a) Define , aw of s#pp "-. April 200,/200+ a) De(ine the (i) 2aw o( #e!an# (ii) 2aw o( supply

(/ !ar&s)

April 2012 Q6 Describe an" FOUR (4) factors t!at ca#se a s!ift in t!e demand c#rve.

(4 marks)

April 200//0, Q6) Describe THREE (3) reasons why a #e!an# cur e is #ownwar# sloping$ (, !ar&s) Sept 200%/200/ Q*A #) 'ase# on the law o( #i!inishing !arginal utility4 e)plain the law o( #e!an#$ (+ !ar&s) January 200%/0/ a) 'rie(ly e)plain any 0CD< (1) (actors shi(t o( #e!an# cur e$ (10 !ar&s)

C2
Sept 2001/200% Q6 a) 'rie(ly e)plain 0CD<(1) basic #eter!inants o( !ar&et #e!an# that coul# cause #e!an# to #ecrease$ (11 !ar&s) b) Suppose June cuts the price o( her best selling 7appuccino co((ee by 10E$ 'rie(ly e)plain what woul# happen to the #e!an# (or5 i) ii) iii) i ) ) June"s 2atte co((ee June"s san#wich 7o((ee 'ean"s co((ee 7o((ee 'ean" sugar <cono!ics te)tboo& (2 !ar&s) (2 !ar&s) (2 !ar&s) (2 !ar&s) (2 !ar&s)

C2 Q3
April 2012 Q6 Exp ain an" TWO (2) factors t!at ca#se t!e s#pp " c#rve to s ope #pward. Sept 200,/200+ 6b) 3hat is the !ain reason (or a supply cur e to slope upwar#@ (% !ar&s) ($ marks)

January 200+/10 (b) Distin%#is! between a c!an%e in s#pp " and a c!an%e in @#antit" s#pp ied. April 200,/200+ a) <)plain any FIVE (5) #eter!inants o( the change in supply$

(10 !ar&s)

Sept 200//200, a) Distinguish between a change in supply" an# a change in Buantity supplie#" (1 !ar&s)

C2 Q3
Dec 2012 Q: Adentif" t!e impact on t!e e@#i ibri#m price and @#antit" in s#%ar market for t!e fo owin% events& (i) (ii) (iii) Bovernment red#ces s#bsidies for s#%ar. 5#"ers expect !i%!er f#t#re price. (4 marks) (4 marks)

;!ere is a rise in t!e incomes of cons#mers and s#%ar is ass#med as an inferior %ood. (3 marks)

Sept 2011 Q6 (b) (a) 6sin% demand and s#pp " c#rves1 exp ain t!e effects on t!e e@#i ibri#m price and @#antit" for eac! of t!e fo owin% events& i) ii) <ons#mers expect price to fa in t!e f#t#re. / fa in t!e price of a reso#rce. (4 marks) (4 marks)

Jan 2011 Q6 (b) (b) 6sin% demand and s#pp " c#rves1 exp ain t!e effects on t!e e@#i ibri#m price and @#antit" for eac! of t!e fo owin% events& i) ii) /n increase in income for an inferior %ood. /n increase in t!e n#mber of se ers. (4 marks)

April 2010/2011 (b) 6sin% demand and s#pp " c#rves1 s!ow t!e effects on t!e e@#i ibri#m price and @#antit" in eac! of t!e fo owin% events& (i) (ii) /n increase in t!e price of a s#bstit#te %ood. (4 marks) / fa in t!e price of inp#ts. (4 marks)

Sept 2010/2011 c) 9sing #e!an# an# supply cur es4 e)plain what !ight happen to the eBuilibriu! price an# Buantity in the (ollowing situations5 (i) An increase in inco!e (or an in(erior goo#$ (6 !ar&s)

(ii)

An increase in the nu!ber o( sellers$

(6 !ar&s)

Sept 200+/2010 (c) 6sin% demand and s#pp " c#rves1 exp ain w!at mi%!t !appen to t!e e@#i ibri#m price and @#antit" in eac! of t!e fo owin% sit#ations& (i) (ii) /n increases in t!e n#mber of b#"ers. /n advance in tec!no o%". (4 marks) (4 marks)

Jan 200+/2010 (c) 6sin% demand and s#pp " c#rves1 exp ain w!at mi%!t !appen to t!e e@#i ibri#m price and @#antit" in eac! of t!e fo owin% sit#ations& (i) (ii) /n increases in t!e n#mber of se ers. 5#"ers w!o expect a price to be !i%!er in next mont!. (4 marks) (4 marks)

April 200+/2010 (c) Exp ain w!at mi%!t !appen on t!e demand for prod#ct / in eac! of t!e fo owin% sit#ations& (i) (ii) /n increases in income and prod#ct / is a norma %ood. 5#"ers expected a ower price for prod#ct / in next mont!. (: marks) (: marks)

(iii) / decrease in t!e price of a c ose s#bstit#te for prod#ct /. marks)

Sept 200,/200+ b) 9sing #e!an# an# supply cur es4 i#enti(y the e((ects on eBuilibriu! price an# Buantity o( #o!estic cars (or each o( the (ollowing e ents5 i) ii) iii) An increase in the price o( petrol (1 !ar&s) ;o ern!ent increases i!port ta) on i!porte# cars (1 !ar&s) Do!estic car pro#ucers Foint enture with (oreign pro#ucers an# share &nowle#ge to re#uce cost$ (1 !ar&s)

(:

May 200,/200+ a) 9sing #e!an# an# supply cur es4 #escribe how each o( the (ollowing e ents will a((ect the eBuilibriu! price an# Buantity o( petrol$ (i) ;o ern!ent re#uces the subsi#ies (or petrol$ (* !ar&s) (ii) An increase in the #e!an# (or ehicles$ (* !ar&s) Jan 200,/200+ a) 9sing #e!an# an# supply cur e4 state the e((ects on the eBuilibriu! price an# Buantity o( ha!burgers (or each o( the (ollowing cases5 (i) 7osts o( pro#uction (or ha!burgers #ecrease$ (6 !ar&s) (ii) An increase in inco!e an# ha!burgers are nor!al goo#s$ (6 !ar&s) (iii) An increase in ta)es on the pro#uction o( ha!burgers$ (6 !ar&s)

Sept 200//200, b) 9sing #e!an# an# supply cur es4 i#enti(y the e((ects on eBuilibriu! price an# Buantity in the M>6 player !ar&et (or each o( the (ollowing e ents5 i) ii) iii) An increase in the price o( an M>6 #ownloa# (* !ar&s) An increase in the nu!ber o( (ir!s pro#ucing M>6 players (* !ar&s) A #ecrease in consu!ers" inco!e i( M>6 players are nor!al goo#s$ (* !ar&s)

April 200//0, Q6) 9sing #e!an# an# supply cur es i#enti(y the e((ects on the eBuilibriu! price an# Buantity o( a goo# (or each o( the (ollowing e ents$ i) ii) C!pro e!ent in pro#uction !etho# o( the goo#$ A #ecrease in the price o( a close substitute$ (* !ar&s) (* !ar&s)

Sept 200%/200/ a) 9sing #e!an# an# supply cur es4 i#enti(y the e((ects on eBuilibriu! price an# Buantity in the M>6 player !ar&et (or each o( the (ollowing e ents5 i) ii) iii) De!an# (alls by the sa!e a!ount as supply rises$ De!an# rises by !ore than supply (alls De!an# rises by less than supply rises$ 6 !ar&s 6 !ar&s 6 !ar&s

C2
Dec 2012 Q6 Disc#ss an" THREE (3) ne%ative effects of a price cei in%. Sept 2011 Q6 (a) Exp ain t!e difference between s!orta%es and s#rp #ses. Sept 2010/2011 Q6 (b) 0!at is price cei in%> Describe an" TWO (2) effects of a price cei in% on t!e market. (C marks) Sept 200%/200/ b) Distinguish between price ceiling an# price (loor$ c) (* !ar&s) ($ marks) ($ marks)

'rie(ly e)plain any 089:(*) e((ects that !ay arise (ro! a price ceiling$ (12 !ar&s)

C2
Jan 2011 Q6 (c) 6sin% t!e midpoint form# a1 ca c# ate t!e price e asticit" of demand if t!e price fa s from D)$ to D)4 and @#antit" increases from 40 #nits to .0 #nits. (4 marks) April 2010/2011 Q6 (c) <)plain the (ollowing concepts5 (i) (ii) (iii) >rice elasticity o( #e!an# 7ross elasticity o( #e!an# Cnco!e elasticity o( #e!an# (6 !ar&s) (6 !ar&s) (6 !ar&s)

Sept 2010/2011 Q6 #) 9sing the !i#point (or!ula4 calculate the price elasticity o( #e!an# i( the price #ecreases (ro! :M% to :M* an# Buantity increases (ro! ,0 units to +0 units$ (6 !ar&s) Sept 200,/200+ Q6 a) 9sing e)a!ples4 brie(ly #escribe how the #e(inition o( a goo# #eter!ines its price elasticity o( #e!an#$ (% !ar&s) b) Assu!e a ta) o( :M 1 is place# on ;oo# A$ 9sing #e!an# an# supply cur es4 i#enti(y an# e)plain whether the buyer or the seller o( ;oo# A will ha e to pay the (ull ta) i( the #e!an# cur e o( ;oo# A is per(ectly inelastic$ (10 !ar&s)

Jan 200+/2010 Q6 (d) *#ppose a se er increases t!e price of cakes from D)10 to D)12. ;!is ca#ses t!e @#antit" demanded to fa from 340 #nits to 300 #nits

(i) (ii)

6sin% t!e midpoint approac!1 ca c# ate t!e price e asticit" of demand for cakes. (: marks) Af t!e se ers obEective is to increase tota reven#e1 s!o# d !e increase t!e price> 0!"> (2 marks)

Sept 200//200, b) A newspaper recently re#uce# its price (ro! :M 1$20 to :M1$ As a result4 the nu!ber o( newspapers sol# increase# (ro! 2*04000 to 6004000 copies$ i) 7alculate the newspaper"s elasticity o( #e!an#$ (* !ar&s) ii) 'ase# on the answer abo e4 #o you thin& the #ecision to re#uce the price o( the newspaper is rational@ (6 !ar&s) Jan 200%/200/ c) Suppose an iceGcrea! seller increases the price o( iceGcrea! (ro! :M1$00 to :M1$10 per cone an# this causes the Buantity #e!an#e# to (all (ro! 10 cones to *0 cones$

i$

9sing the !i#point approach4 calculate the price elasticity o( #e!an# (or iceG crea!$ (6 !ar&s)

ii$ C( the seller"s obFecti e is to !a)i!ise total re enue4 shoul# he increase the price (ro! :M1$00 to :M1$10@ 3hy@ (2 !ar&s) Sept 200*/2001 a) De(ine price elasticity o( #e!an# an# show the (or!ula use# to calculate it$ (1 !ar&s) b) <)plain precisely what #o you un#erstan# by G0$* price elasticity o( #e!an#$ (1 !ar&s) Sept 200*/2001 #) Assu!e the price elasticity o( #e!an# (or petrol is 0$6 an# the current price is :M 1$20 per litre$ ?ow !uch shoul# the price increase in or#er to re#uce its consu!ption by 10 E@ (1 !ar&s) e) 'rie(ly e)plain who woul# bear the bur#en o( an e)cise ta) i( supply is per(ectly elastic an# #e!an# is per(ectly inelastic$ (1 !ar&s)

72 April 2012 Q6 (c) Disc#ss an" THREE (3) determinants of price e asticit" of demand. Sept 2011 Q2 (c) 5rief " exp ain an" THREE (3) determinants of price e asticit" of demand. Jan 2011 Q6 (#) (d) Describe an" ONE (1) determinant of price e asticit" of demand. Sept 200+/2010 Q6 (. marks) ($ marks) (: marks)

(e)

5rief " exp ain an" TWO (2) determinants of price e asticit" of demand. ($ marks)

April 200+/2010 Q6

(d) 5rief " exp ain an" FOUR (4) factors t!at determine t!e e asticit" of demand. (4 marks)
April 200,/200+ Q6 c) (i) De(ine price elasticity o( #e!an#$ (* !ar&s) (ii) 'rie(ly e)plain any H?:<< (6) #eter!inants o( price elasticity o( #e!an#$ (% !ar&s) Jan 200,/200+ Q6 c) <)plain any 089: (*) #eter!inants o( price elasticity o( #e!an#$ (12 !ar&s)

April 200//200, c) 2ist an# #escribe (our (actors that are rele ant to the #eter!ination o( price elasticity o( #e!an#$ Sept 200//200, a) <)plain any H?:<< (6) #eter!inants that can a((ect the price elasticity o( #e!an#$ ;i e an e)a!ple (or each #eter!inant$ (12 !ar&s) Sept 200%/200/ a) 2ist an# #escribe any 089:(*) #eter!inants o( price elasticity o( #e!an#$ (12 !ar&s) Sept 2001/200% a) Assu!e the price elasticity o( #e!an# (or ;oo# A is 2$20$ 'rie(ly e)plain how the (ollowing e ents woul# a((ect the alue o( price elasticity o( #e!an# (or ;oo# A$ i) More substitutes (or the goo# (6 !ar&s) ii) More ti!e passes since the last change in price (6 !ar&s) iii) 7onsu!ers spen# s!aller percentage o( their inco!e on the goo#$ (6 !ar&s) Sept 2001/200% #) Assu!e that the go ern!ent wishes to re#uce s!o&ing in the country by 10E$ Hhe current price o( a pac& o( cigarettes is :M %$ ;i en that the price elasticity o(

#e!an# o( s!o&ers is 0$*4 by how !uch shoul# the go ern!ent increase the price in or#er to achie e its 10E target@ (* !ar&s)

C2
April/May e)a!ination4 200//200, Q6 #) Describe the relationship between price elasticity o( #e!an# an# total re enue$ (+ !ar&s) e) Sept 200*/2001 c) C( a pro#uct has an elastic #e!an#4 a rise in the price will re#uce the total re enue o( the (ir!$" <)plain$ (1 !ar&s)

C2
April 2012 Q6 Exp ain cross e asticit" of demand. Sept 2011 Q6 (#) Distin%#is! between ne%ative and positive cross e asticit" of demand. (4 marks) (3 marks)

Jan 2011 Q6 (c) /ss#me t!at t!e price of Bood 5 !as risen b" 10 percent and t!e @#antit" demanded of Bood / decreases b" 20 percent. <a c# ate t!e cross e asticit" of demand between t!e two %oods. (4 marks) Sept 2010/2011 Q6 #) (ii) Assu!e that the price o( ;oo# ' has risen by 10E an# the Buantity #e!an#e# o( ;oo# A #ecrease# by 20E$ 7alculate the cross elasticity o( #e!an# between ;oo#s A an# '$ (6 !ar&s)

Jan 200,/200+ Q6 a) Distinguish between -cross elasticity o( #e!an#. an# -inco!e elasticity o( #e!an#.$ (* !ar&s) January 200//200, Q6 b) Assu!e that the Buantity #e!an#e# o( goo# I rises (ro! 100 units to 160 units as the price o( pro#uct J (alls (ro! :M6 to :M2$ i$ 7alculate the coe((icient o( cross elasticity #e!an#$ (* !ar&s) ii$ Deter!ine the relationship between goo#s I an# J$ (6 !ar&s) Sept 2001/200% b) Assu!e that when the price o( ;oo# J rises (ro! :M 10 to :M 124 the Buantity #e!an#e# o( ;oo# K rises (ro! 100 units to 11* units$ i) ii) Are J an# K substitutes or co!ple!ents@ (6 !ar&s) 7alculate the alue o( cross elasticity o( #e!an# between ;oo#s J an# K$ (1 !ar&s)

C2
April 2001/200% Q6 a) Suppose that when Leith"s inco!e increases (ro! :M2,4000 to :M604000 per year4 his purchases o( goo# A increase (ro! * units to 1 units$ i$ 7alculate the coe((icient o( inco!e elasticity o( #e!an#$ (* !ar&s) ii$ Cnterpret the alue o( the coe((icient abo e$ (6 !ar&s)

C2
Sept 2001/200% c) <)plain any H38 (2) (actors that a((ect the price elasticity o( supply$ (* !ar&s)

C3
Sept 2011 Q* (a) (a) Define t!e aw of diminis!in% mar%ina #ti it". Jan 2011 Q* (a) (b) Distin%#is! between tota #ti it" and mar%ina #ti it". April 2010/2011 Q* (a) De(ine -consu!er eBuilibriu!.$ Sept 2010/2011 Q* (a) De(ine consu!er eBuilibriu!"$ (6 !ar&s) Sept 200+/2010 Q* (a) Define t!e aw of diminis!in% mar%ina #ti it". (b) 5rief " exp ain t!e difference between tota #ti it" and mar%ina #ti it". (: marks) (4 marks) (4 marks) (4 marks) (1 !ar&s)

Jan 200+/2010 Q* (a) 5rief " exp ain t!e fo owin% terms& (i) (ii) ;ota #ti it". )ar%ina #ti it". (: marks) (: marks)

April 200+/2010 Q* (a) Define , aw of diminis!in% mar%ina #ti it"-. Jan 200,/200+ Q* #) Describe the (ollowing ter!5 (i) Hotal utility$ (ii) Marginal utility (b)

(: marks)

(2 !ar&s) (2 !ar&s)

;!e tab e be ow s!ows t!e mar%ina #ti it" and tota #ti it" enEo"ed b" a cons#mer as !e cons#mes different @#antities of a %ood. <a c# ate t!e mar%ina #ti it" in t!e tab e. Q#antit" 1 2 : 4 3 $ ;ota #ti it" 30 .3 1:: 1$1 1C$ 14$ )ar%ina #ti it"

Sept 200%/200/ b) 7alculate the !arginal utility in the (ollowing table$ ;oo# J (units) 1 2 6 * Hotal 9tility (units) 10 1, 2* 2,

* !ar&s Marginal 9tility ( units)

C3
Sept 200//200, Q* c) Di((erentiate between inco!e e((ect. an# -substitution e((ect. (% !ar&s)

C3
Septe!ber 200//200, c) <)plain how the con#itions (or consu!er eBuilibriu! help to support the law o( #e!an#$

C3
Septe!ber 200+/2010 Q* (c) ;!e tab e be ow s!ows t!e mar%ina #ti it" of %ood /1 %ood 5 and %ood < for 5ett". 6nit of %oods )ar%ina 6ti it" for %ood / ()6/) 1 2 : 4 3 $ (i) 14 1$ 14 12 10 4 )ar%ina 6ti it" for %ood 5 ()65) :. :$ :: :0 2C 24 )ar%ina 6ti it" for %ood < ()6<) 12 10 . 4 C $

*#ppose 5ett" !as D)2$ to spend on t!ese t!ree %oods. ;!e prices of %ood /1 %ood 5 and %ood < are D)21 D): and D)1 respective ". 0!at combination of t!ree %oods s!o# d be p#rc!ased in order to maximise #ti it"> (3 marks) 5ased on t!e answer above1 w!at is t!e tota #ti it" derived b" 5ett"> (: marks)

(ii)

April 200+/2010 Q*

(b)

/ i is %iven a vo#c!er wort! D) . to spend on %ood F and %ood G. ;!e prices of %ood F and %ood G are D) 1 respective ". ;!e mar%ina #ti it" of bot! %oods are s!own in t!e tab e be ow&
Q#antit" of F 1 2 : 4 3 )ar%ina 6ti it" of F 20 1$ 12 4 $ Q#antit" of G 1 2 : 4 3 )ar%ina 6ti it" of G 1$ 14 12 10 4

(i) (ii)

=ow man" #nits of %ood F and G s!o# d / i b#" in order to maximise !is #ti it"> (4 marks) 5ased on t!e answer above1 ca c# ate t!e tota #ti it" of / i. (: marks)

C3
Jan 200//200,4 Q* (c) An#y is gi en a oucher worth :M + to spen# on goo# A an# goo# '$ Hhe prices o( goo# A an# ' are :M 2 an# :M 1 respecti ely$ Marginal utility o( both goo#s are shown in the table below5 Quantity o( A 1 2 6 * 1 Marginal 9tility o( A 20 1% 12 , % Quantity o( ' 1 2 6 * 1 Marginal 9tility o( ' ( MU B ) 1% 1* 12 10 ,

i) ?ow !any units o( goo# A an# ' shoul# An#y buy in or#er to !a)i!ise his utility@ (* !ar&s) ii) 'ase# on the answer abo e4 what is the total utility #eri e# by An#y@ Jan 200//200,4 Q* (c) :e(er to Question 6$ Assu!e other things re!ain unchange# an# the price o( goo# A (alls to :M 1$ i) ?ow !any units o( goo# A an# ' shoul# An#y buy in or#er to !a)i!ise his utility@ (* !ar&s) (2 !ar&s) (6 !ar&s)

ii) 'ase# on the answer abo e4 what is the total utility o( An#y@

C4 Accounting and Economic Profits

April 2012 Q* 5rief " exp ain w!" economic profit is #s#a " sma er t!an acco#ntin% profit. (4 marks)

Sept 2011 Q* (b) )ax is an cons# tant and !e earns D)31000 per mont!. =e decides to @#it !is Eob and opens a cons# tant firm. =e emp o"s two workers and pa"s t!em a tota of D):1000 in sa ar" and D)21000 on office renta . =e receives 100 c ients and c!ar%es D)130 per c ient. i) ii) <a c# ate )axs exp icit and imp icit costs. <a c# ate )axs acco#ntin% and economic profit. (4 marks) (4 marks)

Jan 2011 Q* (b) (c) /dd" is an en%ineer and !e earns D)201000 per mont!. 'ow1 !e decides to @#it !is Eob to open a baker" s!op. =e spends D) :1000 on e%%s1 f avo#r and cream1 D):1300 on f o#r and D)C1000 per mont! on s!op renta . =e se s 21000 cakes at a price of D)40 eac! per mont!. <a c# ate t!e fo owin%& i) ii) /dd"s exp icit and imp icit costs. /dd"s acco#ntin% and economic profits. (4 marks) (4 marks)

April 2010/2011 Q* (b) Jac&y Buit his Fob as a progra!!er where he earne# :M*04000 a year$ ?e set up a co!puter shop using his :M1004000 personal sa ings that earne# interest o( :M64000 per year$ During the year4 he !a#e :M114000 in total re enue an# pai# :M%4100 (or the costs o( eBuip!ent4 utilities4 internet ser ice an# o((ice supplies$ (i) (ii) Di((erentiate between accounting pro(it" an# econo!ic pro(it"$ (% !ar&s) 7alculate Jac&y"s accounting pro(it an# econo!ic pro(it$ (% !ar&s)

Sept$ 200+/2010 Q* (d) Define t!e fo owin% terms& (i) (ii) /cco#ntin% profit. Economic profit. (: marks) (: marks)

Jan 200+/2010 Q* (c) David is an en%ineer and !e earns D)20 000 per mont!. 'ow1 !e decides to @#it !is Eob and opens a baker" s!op. =e spends D)2 300 on e%%s1 f avo#r and cream1 D): 000 on f o#r and D)$ 000 on s!op renta . =e se s 2000 cakes at a price of D) :0 eac!. (i) =ow m#c! is Daviss tota reven#e> (2 marks)

(ii)

<a c# ate Davids acco#ntin% and economic profits.

(2 marks) (3 marks) (* !ar&s)

Sept$ 200,/200+ Q1(c) c) Di((erentiate between -accounting pro(it. an# - econo!ic pro(it.$

Sept$ 200,/200+4 Q1(c)

Da i# pre iously wor&e# as a !anager with an annual salary o( :M10000$ Mow4 he #eci#es to open a restaurant at his own shop$ 'elow is the yearly #ata o( Da i#"s business5
Cte!s >ay!ent to raw !aterial suppliers Cnterest earne# (ro! sa ing in ban& :ental earne# (ro! own shop Salary o( helper in restaurant Hotal yearly sales (i) ?ow !uch is Da i#"s i!plicit cost@ (ii) 7alculate his accounting pro(its$ (iii) ?ow !uch is his econo!ic pro(its@ !ar&s) A!ount (:M) 204000 24000 %4000 ,4000 1204000 (6 !ar&s) (6 !ar&s) (6

Sept 200//200, a) ;ina is an engineer an# she earns :M 2,4000 per year$ ;ina #eci#es to Buit her Fob an# opens a ba&ery$ She spen#s :M 2000 on eggs4 (la our an# crea!N :M *000 on (lour an# :M 1000 on shop rental$ She sells 1000 ca&es at a price o( :M 21 each$ i) 3hat is ;ina"s total re enue@ 2 !ar&s ii) 7alculate ;ina"s accounting an# econo!ic pro(it$ % !ar&s Sept 200*/2001 Q*b) Distinguish between e)plicit cost an# i!plicit cost$

% !ar&s

C4
Jan 2011 Q* (c) (d) Differentiate between&

i)

8ixed cost and variab e cost.

(4 marks)

Sept 2010/2011 Q* (b) 'rie(ly e)plain the #i((erence between the (ollowing ter!s5 (i) (ii) (iii) <)plicit cost an# i!plicit cost Short run an# long run 0i)e# costs an# ariable costs (* !ar&s) (* !ar&s) (* !ar&s)

Jan 200+/2010 Q* (d) Differentiate between ,fixed costs- and ,variab e costs-. marks) April 200+/2010 Q* (d) Differentiate between& (i) (ii) Exp icit cost and imp icit cost. *!ort r#n and on% r#n.

($

(4 marks) (4 marks)

(iii)

8ixed cost and variab e cost.

(4 marks)

Jan 200%/200/5 Q* a) 9sing appropriate e)a!ples4 brie(ly e)plain the !ain #i((erence between (i)e# input an# ariable input$ (% !ar&s) January 200%/200/5 Q* a) 3hat is the #i((erence between the short run an# the long run@ Sept 200%/200/ a) Distinguish between short run an# long run Sept 2001/200% Q5 c) Distinguish between short run an# long run in pro#uction

(% !ar&s)

% !ar&s

1 !ar&s

April 200,/200+ c) 3hat is the #i((erence between accounting pro(it an# econo!ic pro(it@ (/ !ar&s)

C4
Sept 2011 Q* (#) Describe an" TWO (2) re ations!ips between mar%ina cost and mar%ina p!"sica prod#ct. (3 marks) Apr 2010/20115 Q* (c) 9sing appropriate #iagra!s4 e)plain the relationship between !arginal physical pro#uct" an# !arginal cost"$ (, !ar&s) Jan 200,/200+ Q* c) 'rie(ly #escribe the relationship between M>> o( labour an# M7$ (/ !ar&s)

Sept4 200//200, Q* b) -Marginal cost (M7) is a re(lection o( !arginal physical pro#uct (M>>) o( the ariable input.$ <)plain$ (% !ar&s) Sept 200%/200/ Q3* Production Costs c) 'rie(ly e)plain the relationship between !arginal cost an# !arginal pro#uct$ % !ar&s

C4 Production Costs
Sept 2011 Q* (c) Define t!e fo owin% terms& i) 2aw of diminis!in% mar%ina ret#rns (4 marks) (* !ar&s) (6 !ar&s)

Jan 200,/200+ a) Sate the law o( #i!inishing !arginal returns$ Apr 200//200,5 Q* (c) c) State the law o( #i!inishing !arginal returns$

Jan 200%/200/5 Q*(b) b) 3ith an appropriate e)a!ple4 #escribe the law o( #i!inishing !arginal returns$ ?ow #oes it relate to the shape o( the !arginal cot (M7) cur e@ (+ !ar&s)

Sept 200*/2001 c) Cllustrate the law o( #i!inishing returns graphically an# show the relationship between !arginal pro#uct4 a erage pro#uct an# total pro#uct$ (10 !ar&s)

C4
Dec 2012 Q4 Units of labour 0 1 2 : 4 3 Total ro!u"t (T ) (Units) 0 $ 13 21 24 2$ #ar$inal ro!u"t (# ) (Units) 7 $ Total %ariable Cost (T%C) (R#) 0 : $ . 12 13 : Total Cost (TC) (R#) 12 &'era$e Total Cost (&TC) (R#) 7 #ar$inal Cost (#C) (R#) 7 :

5ased on t!e tab e above& (i) (ii) (iii) <a c# ate t!e mar%ina prod#ct ()() for eac! eve of abo#r. 0!at is t!e tota fixed cost (;8<) of t!is firm> (4 marks) (2 marks)

<a c# ate t!e tota cost (;<)1 avera%e tota cost (/;<) and mar%ina cost ()<) for eac! eve of prod#ct. (1: marks) (2

(iv) /t w!ic! eve of abo#r does diminis!in% mar%ina ret#rn set in> marks)

A ri! 2"12 Q4
;!e tab e be ow s!ows t!e water t#mb er prod#ction at Drinkwares factor". Output (unit) 1 2 : 4 3 $ C Total %ariable Costs (R#) 430 400 11000 11400 11C30 11.00 21000 ( ( ( ( ( ( Total Cost (R#) 31430 ) ) ) ) ) ) &'era$e Total Cost (R#) ( ( ( ( ( ( 11000 ) ) ) ) ) ) #ar$inal Cost (R#) 7 :30 200 400 :30 130 100

5ased on t!e tab e above1 ca c# ate and fi #p t!e missin% va #es (in bracket)& (i) (ii) ;ota fixed cost (;8<) for eac! eve of o#tp#t. ;ota cost (;<) for eac! eve of o#tp#t. (2 marks) ($ marks)

(iii) (iv)

/vera%e tota cost (/;<) for eac! eve of o#tp#t.

($ marks)

;ota reven#e (;D) for eac! eve of o#tp#t if t!e price of eac! water t#mb er is fixed at D)...0.

C4
Dec 2012 Q* 5rief " describe ,s#nk cost- wit! an examp e. Jan 2011 Q* (#) (e) Define s#nk cost. Apr 200//200,5 Q*(b) b) 3ith e)a!ple4 brie(ly #escribe -sun& cost.$ (4 marks) (: marks)

(% !ar&s)

C4 LRATC
Sept 2011 Q* (c) Define t!e fo owin% terms& ii) Diseconomies of sca e (4 marks)

Jan 2011 Q* (c) Differentiate between& ii) Economies of sca e and diseconomies of sca e. marks) Sept 2010/2011 Q* (c)

($

9sing a 2ong :un A erage Hotal 7ost (2:AH7) #iagra!4 brie(ly e)plain econo!ies o( scale"4 constant returns to scale" an# #isecono!ies o( scale"$ (10 !ar&s)

Sept 200+/2010 Q* (e) Define on% r#n avera%e tota cost (2D/;<) c#rve b" #sin% an appropriate dia%ram. (4 marks) Apr 200//200,5 Q6b b) 9sing an appropriate #iagra!4 e)plain the shape o( the long run a erage total cost (2:AH7) cur e$ (12 !ar&s) Sept 200//200, Q* c) 3ith a suitable #iagra!4 #escribe the shape o( the long run a erage total cost 2:AH7 cur e$ 11 !ar&s

C4 LRATC
Jan 200+/2010 Q* (c) 5rief " exp ain economies of sca e. (: marks)

Jan 200,/200+ Q* b) 9sing an appropriate #iagra!4 #istinguish between -econo!ies o( scale. an# -#isecono!ies o( scale.$ (10 !ar&s) Sept 200%/200/ Q* #) 'rie(ly #escribe #isecono!ies o( scale 6 !ar&s

Jan 200//200,5 Q1a

a) State an# brie(ly e)plain TWO (2) (actors o( econo!ies o( scale$ (1 !ar&s)

Sept 200*/2001 Q* Q4 a) <)plain the (actors that contribute to econo!ies o( scale$

(+ !ar&s)

C5
Sept 200+/2010 Q1 (a) Exp ain t!e FOUR (4) ass#mptions of a perfect competition market. (4 marks)

April 200,/200+ Q1 a) 2ist an# e)plain any 0CD: (1) characteristic o( a per(ect co!petition !ar&et (10 !ar&s) Jan 200//0, Q1(#) #) ?ow #oes per(ect co!petition #i((er (ro! !onopoly@ (10 !ar&s)

Sept 200%/200/ Q1 a) 'rie(ly #escribe 089: (*) !ain characteristics o( per(ect co!petition$ (, !ar&s) Sept 2001/200% Q5 a) 7alculation on per(ectly co!petiti e (ir!

(16 !ar&s)

Sept 200*/2001 $Q1 a) 'rie(ly e)plain the basic characteristics o( pure co!petition an# pure !onopoly !ar&ets$ (, !ar&s) Apr 200%/200/4 Q1 (a) a) 3hat is the shape o( the #e!an# cur e (ace# by the per(ectly co!petiti e (ir!@ 3hy@ (+ !ar&s) #) ?ow is a per(ectly co!petiti e (ir!"s !arginal cur es relate# to its supply cur e@ (* !ar&s)

C5
Sept 2011 Q1 (a) Distin%#is! between prod#ctive and reso#rce a ocative efficiencies. ($ marks)

Sept 2010/2011 Q1 (b) <)plain the #i((erences between resource allocati e e((iciency an# pro#ucti e e((iciency$ (% !ar&s) April 200,/200+ Q1 a) De(ine allocati e e((iciency an# brie(ly #escribe how it is achie e in a per(ectly co!petiti e$ (, !ar&s) Sept 200%/200/ Q1 b) Distinguish between allocati e e((iciency an# pro#ucti e e((iciency$

(, !ar&s)

Sept 2001/200% Q5 b) 9sing an appropriate #iagra!4 e)plain how allocati e e((iciency" an# -pro#ucti e e((iciency" are achie e# in a per(ectly co!petiti e !ar&et$ (/ !ar&s) Sept 200*/2001 $Q1 c) Distinguish between allocati e e((iciency an# pro#ucti e e((iciency$

(1 !ar&s)

C5
Apr 2010/20114 Q1 (a) Hhe (ollowing table shows the re enue an# cost o( a (ir! at the arious Buantities o( output5 Q#$ n%i%& o' o#% #% 0 1 2 6 * 1 % (i) To%$! Re(en#e (RM) 0 %0 110 110 1,0 200 210 M$r)in$! Cos% (RM) G M$r)in$! Re(en#e (RM) G

To%$! Cos% (RM) 10 60 %0 100 110 1+0 220

7alculate the !arginal cost an# !arginal re enue o( the (ir! at each le el o( output$ (% !ar&s) 3hat Buantity o( output shoul# the (ir! pro#uce@ <)plain$ !ar&s) (*

(ii)

Jan4 200%/200/4 Q1 (a) 1$ Assu!e that the !ar&et price (or a per(ectly co!petiti e (ir!"s pro#uct is (i)e# at :M6$00$ 8utput 0 1 2 6 * 1 Hotal :e enue (H:) (:M) Hotal 7ost (H7) (:M) 1 2 * / 11 1% Marginal :e enue (M:) (:M) G Marginal 7ost (M7) (:M) G

i) 7o!plete the table abo e$ (, !ar&s) ii) At what output le el #oes the (ir! !a)i!ise pro(it or !ini!iOe loss@ (2 !ar&s) iii) 3ill the longGrun eBuilibriu! price eBual to :M6@ 3hy@ (2 !ar&s)

Apr 200%/200/4 Q* (b)

2$ ;i en the (ollowing in(or!ation4 i#enti(y whether the (ir! shoul# shut #own or continue to operate in the shortGrun$ i) 8utput P 100 unitsN >rice P :M10N A erage (i)e# cost (A07) P :M6N A erage ariable cost (AD7) P :M* (* !ar&s) ii) 8utput P /0 unitsN >rice P :M1N A erage (i)e# cost (A07) P :M2N A erage ariable cost (AD7) P :M/ (* !ar&s)

C5
Sept 2010/2011 Q1 (a) 'rie(ly e)plain any THREE (3) assu!ptions o( !onopoly$ (% !ar&s)

(c) Describe any THREE (3) types o( barriers to entry that create the con#itions (or !onopoly$ (+ !ar&s) Jan 200+/2010 Q1

(b)

Exp ain an" THREE (3) t"pes of barriers to entr" in a monopo ".

(. marks)

Jan 200,/200+ Q1 a) 'rie(ly e)plain any H?:<< (6) characteristic o( !onopoly$ Sept 200//200, Q5* c) 7o!pare an# contrast !onopoly an# !onopolistic co!petition$ Sept 200%/200/ Q1 c) 3hy is the !onopolists" #e!an# cur e not per(ectly elastic@

(% !ar&s)

(, !ar&s)

(6 !ar&s)

Sept 200,/200+ Q4* a) 'rie(ly e)plain any H?:<< (6) barriers to entry into a !onopoly !ar&et$(+ !ar&s)

Jan 2011 Q1 (c) Describe an" THREE (3) barriers to entr" for a monopo ". Sept 200//200, Q5* a) <)plain any H?:<< (6) types o( entry barriers that create !onopoly$

(. marks)

(% !ar&s)

Jan 200%/0/ Q1(b) b) 3hat are the THREE (3) !aFor barriers to entry that e)plain the e)istence o( !onopoly@ (+ !ar&s)

C5
Dec 2012 Q1 Define price discrimination. 5rief " exp ain THREE (3) t"pes of price discrimination. Sept 2011 Q1 (c) Describe t!e THREE (3) t"pes of price discrimination. April 2010/2011 Q1 (b) (i) (ii) De(ine price #iscri!ination$ Describe the THREE (3) types o( price #iscri!ination$ (6 !ar&s) (+ !ar&s)

(. marks)

Sept 200+/2010 Q1 (b) (i) Define price discrimination.

(: marks)

(ii) 5rief " exp ain t!e THREE (3) conditions re@#ired to practice price discrimination. ($ marks) April 200,/200+ Q1 a) De(ine price #iscri!ination$ 3hat are the three (6) necessary con#itions that !ust be !et be(ore a (ir! can practise prise #iscri!ination@ (+!ar&s) Sept 200//200, Q1 b) De(ine price #iscri!ination$ 'rie(ly e)plain H?:<< (6) types o( price #iscri!ination$

(/ !ar&s)

Sept 200%/200/ Q1 #) 3hat are the H?:<< (6) con#itions reBuire# to practise price #iscri!ination@ (% !ar&s)

C5
Dec 2012 Q1 <ompare a monopo ist wit! a monopo istic competitive firm. (4 marks)

/pri 2012 Q3 Distin%#is! t!e demand c#rve faced b" a perfect " competitive firm and a monopo istic competitive firm Sept 2011 Q1 (#) 5rief " exp ain an" TWO (2) differences between a monopo istic competitive firm and a perfect " competitive firm. (4 marks) Sept 200+/2010 Q1 (c) 5rief " compare t!e demand c#rves in perfect competition and monopo istic competition. (4 marks) Jan 200+/2010 Q1 (a) Exp ain an" THREE (3) c!aracteristics of a monopo istic competition market. marks) ($

April 200,/200+ Q1 b) Describe any THREE (3) characteristics o( a !onopolistic co!petition !ar&et$ (% !ar&s) Jan 200//200,5 Q1c c) 'rie(ly #escribe any THREE (3) characteristics o( !onopolistic co!petition$ (% !ar&s) Jan 200%/200/5 Q1c c) ?ow are oligopoly an# !onopolistic co!petition ali&e@ ?ow are they #i((erent@ (% !ar&s)

C5
/pri 2012 Q3 Exp ain an" THREE (3) c!aracteristics of an o i%opo ist. Jan 2011 Q1 (b) Exp ain t!e THREE (3) c!aracteristics of an o i%opo istic market. April 200,/200+ Q1 (c) State any THREE (3) characteristics o( an oligopoly !ar&et$ !ar&s) Sept 200,/200+ Q1 b) State an# brie(ly e)plain any 089: (*) characteristics o( an oligopoly !ar&et$ (, !ar&s) (. marks) ($ marks) (6

C5 Jan 2011 Q1 (a) Distin%#is! between& i) ii) =omo%eneo#s and differentiated prod#cts. (rice taker and price searc!er. (3 marks) (3 marks)

Sept 2010/2011 Q1 (#) 'rie(ly e)plain the (ollowing concepts5 (i) (ii) >rice #iscri!ination >rice ta&er (2 !ar&s) (2 !ar&s) (4 marks)

Sept 200+/2010 Q1 (d) Differentiate between price taker and price searc!er. Jan 200+/2010 Q1 (c) Define t!e fo owin% terms& (i) (ii) (iii) (rice taker. (rofit maximiHation r# e. (rod#ctive efficienc".

(: marks) (: marks) (4 marks)

C5
Sept 200*/2001 Q1 $b) 9n#er which !ar&et classi(ication #oes each o( the (ollowing !ost accurately (it@ Cn each case Fusti(y your classi(ication$ i) Durian seller in L2 (6 !ar&s) ii) Hhe water supply co!pany in Selangor$ (6 !ar&s) iii) A sha!poo !anu(acturer in >ulau >inang (6 !ar&s) i ) Hhe car in#ustry$ (6 !ar&s)

C*
Dec 2012 Q3 Define t!e fo owin% terms& (i) (ii) )ar%ina 8actor <ost ()8<)9 Derived demand. (: marks) (: marks)

Septe!ber <)a!ination4 200,/200+5 Q*c c) De(ine the (ollowing ter!s5 i) Marginal :e enue >ro#uct (M:>) ii) Marginal 0actor 7ost (M07) iii) Deri e# #e!an#

(2 !ar&s) (2 !ar&s) (* !ar&s)