By use of diagrams, illustrate and explain the resultant changes on the equilibrium price and quantity from a simultaneous fall in price of a substitute and an increase in the cost of raw materials for a specific commodity.

Discuss the major causes of supply curve shifts

Outline the salient features of a monopsony market model

(i) A monopolistic firm with a linear demand curve finds that it can sell two units at Sh.12 or twelve units at Sh.2. Its fixed cost is Sh. 20 and its marginal cost is constant at Sh. 3 per unit Derive and plot the following: Marginal cost, average total cost, […]

The table below represents a production function for a commodity X where capital is fixed and labour is variable. Quantity of Labour Total Physical product (Tons of X) 0 0 1 15 2 34 3 48 4 60 5 62 Using the data in the table, plot the marginal product […]

(a) State the Law of diminishing returns as applied to production functions. (4 marks) (b) Illustrate and explain the three stages associated with the law of variable proportions. (11 marks)

This your first official “Competition Simulation Decision 1” round. I am sure that you had a good week of practice and you are ready and eager to start competing. In addition to your core decisions based on (Fares, Marketing, Fleet, Scheduling, Human Resources, and Financing) you will be challenged by […]

Argue for and against international trade restrictions.

Distinguish between a tariff and a quota as applied in International Trade.