(a) In the context of game theory, explain the following statement: “winning isn’t everything; it is the only thing” (5 marks) (b) The optimal solution of a two-person zero-sum game always represents a saddle point regardless of whether the players use pure or mixed strategies. Explain. (10 marks)

a) Give a definition of an “internal control system”. (4 marks) b) Describe the internal control procedures you would recommend to the owner of a medium size wholesale business to facilitate prevention and detection of errors and frauds. (16 marks)

Explain the connection between the following: (i) Reduced costs column and the range of optimality. (ii) Dual prices and the range of feasibility.

The total cost equation in the production of bacon at some hypothetical factory is C = 1000 + 100Q – 15Q2 + Q3 Where C = Cost measured in shillings, while Q = quantity measured in kilogrammes. a) Compute the total and average costs at output level of 10 and […]

Control procedures consist of practices and procedures in addition to the control environment, established to achieve certain specific objectives. For each of the procedures listed below, explain the purpose of the control procedures and state the tests of control you would perform to confirm that the control objective was being […]

One of the properties (assumptions) of linear programming is that fractional values of the decision variables are permitted, that is, divisibility. However, fractional values might sometimes be meaningless. Explain one case where fractional values might be meaningless. What approach should be used to over-come this assumption?

i) Briefly explain and illustrate quasi-rent. (5 marks) ii) Discuss some of the economic implications of a rising trend in the rural-urban migration and offer policy recommendations to reverse it. (10 marks)

a) Explain what is meant by the terms transfer earnings and economic rent of a factor of production. (5 marks) b) Using well labelled diagrams, illustrate cases when the total factor payments may equal to economic rent, or transfer earnings or shared between the two.(10 marks)

Business at M and K Sunshine Boutique can be viewed as falling into three distinct seasons: (1) Christmas (November – December) (2) Rainy season (April – June) (3) All other times. The average weekly sales in thousands of shillings during each of these seasons in the past four years has […]