(a) Using a well labeled diagram, show and explain why in a perfectly competitive market structure, when the marginal revenue equals marginal cost, this is only a necessary but not sufficient condition for profit maximization. (6 marks) (b) Bring out the salient features of a monopolistic competition market model (6 […]

Discuss some of the consequential economic impacts of high and rising rate of interest.

What factors determine the rate of interest in an economy?

(i) Outline the major differences between quantity and the Keynesian Liquidity preference theories of money demand. (5 marks) (ii) If money supply in a given economy equals 500 while the velocity and price equal 8 and 2 respectively, determine the level of real and nominal output. (3 marks)

Assume a consumer spends all his income in the purchase of two goods X and Y whose prices are Sh. 30 and Sh. 20 per unit respectively. The consumer’s monthly income is Sh. 12,000. He is satisfied with various combinations of X and Y but prefers to spend his income […]

(i) Why is the mode not used extensively in statistical analysis? (3 marks) (ii) “The standard deviation is the natural partner to the mean.” Explain. (3 marks)

Describe briefly how to estimate the median on a grouped frequency distribution graphically.

In what situation would a weighted mean be used? Explain

Mr. Ole Mboga is married to Pesa Mboga. Ole Mboga is a registered engineer and he is the proprietor of Leta Engineering Services a firm of consulting engineers. He is nevertheless fully occupied as an employee of Zeta Construction Limited. His company is therefore managed by his wife who draws […]