Hawassa University

Faculty of Environment, Gender and Development Studies

Managerial Economics in Agribusiness
Sample Exam Questions

Name _____________________________ID__________ Max. Marks = XXXpts

Time allowed: 3:00hrs

1) Discuss shortly the three sector circular economy model and substantiate you discussion using diagram
(7pts)
2) Explain shortly demand and supply and discuss what determine the shapes of demand and supply curves
(7pts)
3) Discuss how supply shock affects the market for a commodity and illustrate your analysis using graph(s)
(10pts)
4) Given the linear demand function Qdd = 20 – 1.25P and supply function Qss = 2P – 4; calculate market
clearing price and quantity (10pts)
5) Based on the data in Table 1, answer the following questions [10pts]

Table 1. Production schedule for dairy agribusiness

Cow Feed (TDN) Milk (litres )
4 0 0
4 1 20
4 2 30
4 3 50
4 4 56
4 5 59
4 6 60
4 7 60
4 8 58
4 9 50

a) Explain shortly why the number of cows is constant and fixed at 4

b) Determine schedule for marginal product and average product
c) When does the law of diminishing returns to feed occur?
d) Determine the amount of feed that shows the three stages of production
e) Determine the amount of feed that show rational region
2
6) The firm’s total cost function is given by the equation TC = 4Q – 2Q [10pts]
a) Determine TFC and AFC
b) Show TVC and AVC
c) Show MC
d) Show ATC
e) Explain briefly the link between production and cost
7) Discuss the different market structures and support your discussion using practical examples [10pts]
8) Write short essay on market failure and how to correct it [10pts]