TRƯỜNG ĐẠI HỌC NGOẠI THƯƠNG

BÀI THI KẾT THÚC HỌC PHẦN

Tên học phần : Kinh tế kinh doanh
Giai đoạn II học kỳ II năm học 2020-2021

Họ và tên sinh viên: Vũ Phương Anh Ngày thi: 28/12/2021

Ngày sinh: 05/11/2002 Ca thi: 15h
Mã sinh viên: 2014150204 Phòng thi: 01
Lớp tín chỉ: KTEE312(GD2-HK1-2021).2 Số trang bài làm:

Điểm bài thi Họ tên và chữ ký của giáo viên chấm thi
Bằng số Bằng chữ
GV chấm thi 1:

GV chấm thi 2:

PHẦN BÀI LÀM (Đề 1)

1. Analyse the advantages of owner-controlled firms. Is this kind of firms getting

more popular in Vietnam, why? (3 points)
*Analyse the advantages of owner-controlled firms
Owner control arises when a firm's equity holders have enough power over the board of
directors to have a significant influence on policy, either directly through voting control
on the board of directors or indirectly through a large enough percentage of the voting
stock. Owner-controlled businesses have a number of advantages as follows:
- Owner-controlled enterprises are more productive and accountable to the owner's
desires
 can chinh
- Owner and management interests are aligned because the owners have substantial
power on policy and can play a role in decision making along with the manager, so that
the conflict between the owner and manager can be reduced
- Owner-controlled regimes assist keep the owner's power to determine future direction
because the owners holding large shares have considerable impact on the policy and the
operation of the company
- Owner-controlled firms can avoid the problem of agency because the goal of owners
and managers are aligned

* Is this kind of firms getting more popular in Vietnam, why?

This kind of firms is not getting more popular in Vietnam because if some owners
holding large share can have dominant power over the operation and policy of the firm.
The owners are not always good managers and they may have decision that are not really
suitable for the company operation. On the other hand, in Vietnam, manager-controlled
existing more commonly
businesses are becoming more prevalent because there are many departments in a firm
and each department needs managers specializing in that specific area so as to effectively
operate and make decision regarding the business. Besides, manager-controlled firms is
desirable for the firm’s complexity, scale and expansion. As the firm is managed by
expertise managers, the firm can operate well and expand so that the other shareholders
can gain benefits from the expansion of the firm.

2. Explain your understanding about economies of scale and economies of scope.

Give example for each of the types
*Economies of scale:
Economies of scale are long-run phenomena in which larger factories have lower average
production costs. The minimum efficient scale of production is the scale at which the
lowest unit costs are initially achieved. Plants that are designed to function at maximum
output or at the lowest cost must be at least this big. Firms that operate below the lowest
efficient scale face cost penalties, the magnitude of which is determined by the slope of
the long-run average cost curve at the point of minimal efficiency.
Example: Large businesses can profit from lower interest rates and more borrowing.
Banks, for example, charge cheaper interest rates to large corporations like Walmart and
Amazon because the risk is smaller. A new local restaurant, for example, is more likely to
fail than a McDonald's, thus they are given greater rates to account for risk. At the same
time, credit is considerably more readily available in reality. Big businesses not only
obtain higher rates, but they also have a larger pool of financial institutions to pick from.

*Economies of scope:
When goods share similar inputs and diversification leads to cost reductions, economies
of scope occur. By creating a variety of complimentary goods, a manufacturing company
may be able to make better use of its machinery. The possibility of doing so might have a
substantial impact on the company's profitability.
Example: In the case of a restaurant, for example, a business that sells only one type of
food may not be disadvantaged in terms of operation expenses because they do not have
to spend as much money on as many ingredients. Restaurants that serve a range of related
meals and beverages, on the other hand, may be able to lower their unit expenses by
attracting a larger number of customers with a more diverse menu.

3.
a.
TC(Q)=1.5Q^2-5Q+10
Assume output of firm 1 and firm 2 is Q1 and Q2 respectively
→ Qt=Q1+Q2
→ Market demand: P=115-Q  P=115-Q1-Q2
Profit function of firm 1:
π1=TR1-TC1
=P1.Q1 - TC1
=(115-Q1-Q2)*Q1 – (1.5Q1^2-5Q1+10)
=115Q1– Q1^2– Q1Q2– 1.5Q1^2 + 5Q1–10
π1= –2,5Q1^2 + 120Q1 – Q1Q2 – 10

Profit function of firm 2

π2=TR2-TC2
=P2.Q2 - TC2
=(115-Q1-Q2)*Q2 – 1.5Q2^2-5Q2+10
=115Q2 – Q1Q2 – Q2^2 – 1.5Q2^2-5Q2+10
π2= – 2,5Q2^ 2 + 120Q2 – Q1Q2 – 10

Firm 1 maximizes profit when:

π1’=0 ⇔ –5Q1 + 120 – Q2 = 0 (1)
→ Reaction function for firm 1: Q1= (120 – Q2)/5  Q1=24 – 0,2Q2

Firm 2 maximizes profit when:

π2’=0 ⇔ –5Q2 + 120 – Q1 = 0 (2)
→ Reaction function for firm 2: Q2= (120 – Q1)/5  Q2=24 – 0,2Q1

Q2

120
Q1=24 – 0,2Q2 (firm 1)

24
20
Q2=24 – 0,2Q1 (firm 2)
Q1
20 24 120
tot nhat
b. Optimum quantity and price of Cournot:
From (1), (2), the Cournot equilibrium is achieved when
−5𝑄1 + 120 − 𝑄2 = 0
{
−5𝑄2 + 120 − 𝑄1 = 0
→ Q1= Q2 = 20
Market price: P=115-Q1-Q2=115-20-20=75
→ π1= –2,5Q1^2 + 120Q1 – Q1Q2 – 10 = 990
π2= – 2,5Q2^ 2 + 120Q2 – Q1Q2 – 10 = 990

4.
* The effects of each determinant on demanded quantity of beans
- At significance level 1%, if beans price increases 1%, demanded quantity of beans
demanded will decrease 0.0509%, holding other factors unchanged.
- At significance level 1%, if maize price increases 1%, demanded quantity of beans will
decrease 0.0166%, holding other factors unchanged.
- At significance level 10%, if yam price increases 1%, demanded quantity of beans will
decrease 0.0236%, holding other factors unchanged.
- Cross-price elasticity between gari and beans is negative and insignificant (-0.002) =>
no statistical significance.
- At significance level 10%, if rice price increases 1%, demanded quantity of beans will
decrease 0.0103%, holding other factors unchanged.
- Household size does not have a statistically significant effect on the quantity demanded
of beans.
- Household income does not have statistically significant effect on the quantity
demanded of beans

*The effect of price of beans on the demanded quantity of other goods?

- At significance level 1%, if beans price increases 1%, demand quantity of maize will
decrease 0.0166%, holding other factors unchanged.
- At significance level 1%, if beans price increases 1%, the quantity of yam demanded
will decrease 0.0234%, holding other factors unchanged.
- At significance level 10%, if rice price increases 1%, the quantity of rice will decrease
0.0103%, holding other factors unchanged.
- Effect on demanded quantity of gari: not statistically significant.

b. Categorize goods based on the effect of income and demanded quantity.

- Normal goods: When income increases, quantity demanded increases: rice, yam
- Inferior goods: When income increases, quantity demanded decreases: maize, gari.
- There is no statistical significance between household income and beans.