oy feo Question 1 19 marks] Gi soma"? market: The dia, 3 7am below shows the cost curves for a wheat farmer in SSO x 1, we arg YE : Yo ? 1 . oe Fe Ses ot 02) ‘At what price of wheat does the farmer break even? Bis dotevs vey ashe ¥ Question 218 marks} sod tual Fever jnal revenue ——— -,' @ The competitive market price of ig/100dhs, Plot the marBin’ : market price of 3 good 8 ally label your dia sre wey 7 Sutves for outputs between 0 and 5. Make 8 (dus per aah) Junk fev how | vy {8 — \e . WO Be eM “apse Quertion 3 | 1 figure telemars {in totayy shows. Gap, a firm in Co i ‘ ‘Oulput (q*)? [3 marks} qe F 200M dakeds Per clay b. ‘Wht the pice te fem charges for ach cet? 8 man O 2 yoo" done, fee 5 : Whats the fem’ execs capacity? Explain why, mara] Ve case it Pudnces owed ae gui mn ‘ Sie Sinai ATe Jai ly eA Ch prince. oq ahh fe Niamey ty of (296-2065 Bo} creas) a. theca rm mae a profit or es? Calculate the fan's prof s(n) aad hans ‘ the corresponding area in the figure above. {5 marks} sou (oss, fom TRA AXew Iwex 200 - MOK we = ~ Bed douuy Is the figure above depicting the firm's position inthe Short or Long Run? Explain why. 13 marks} ‘ : _peyeimer—th te AVE ry Tae wt Ce fete athe de ee gre The Sess ban Ba RT ded oF not # Clem weit Win Shevd van, hecege we leg ver ot ; opvelt a tee profitQD Question 25 marks} 2 Explain verbally, in a short paragraph of not more than 5-7 sentences, why, every December, Ww Starbucks offers specialty drinks (such as Gingerbread Latte, or Eggnog Latte), epart from its y regular drinks found throughout the year. Your arguments should be drawn purely from Economie ‘Theory and should include both short and long run impacts. [Hint: You may want to consider the market structure in which Starbucks operates] ato co phaw te Cunjeery Sav firey nnwk hece pre tend ote uke te crepe, ee 4 ce ty dened oP tychew ditt : du Yredatere Guy pled will inermaye Sod wi pe Centers a4 0 vest ay profit ill iw Crease — aa lew a du weet 12 Oronapistic complition % lite oh yun 14 will ineneases Te pyr we ae Ne an dened becuse Peoek cw ni on ie Og Sa heeh uw ‘ gin tye Gory vee Od wil Ne. ths Ités to eet ku war Kor and as TORRE oh FC dened cuvwe isyere im bM evotits unk! Vy w chive