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BB107/BBB1023/BBS1083 Group Assignment

Due Date: February 29 2024 (during lecture)
Answer All Questions (Total 30 Marks).
Part A (14 marks)
To answer questions in part A of your assignment, you need to read the article
(uploaded in CN) entitle, “The quick and quiet rise of RM2 stores (The Edge Nov
24, 2020).
1. Describe factors that stimulate the growth of RM2 store business for the past two
years. (1 marks)

2. Discuss the evolution of domestic consumer shopping habits over the last four
decades. (2 marks)

3. List out the names of competitors in RM2 market. (1 marks)

4. Based on the financial and operational summary (p. 3), comment on selective RM2
shops business (namely NT shop, Ninso, and Noko) revenue and net profit margin
(net profit/total revenue x 100%). (2 marks)

5. Explain similarities and differences between Mr Dollar shop and other types of
RM2 shop. (1
marks)

6. List out names of competitors from non-single-priced chains. (1 marks)

7. If Malaysia becomes a high-income country in the near future, do you think this
RM2 business sector will continue to thrive? Explain your answer. (2 marks)

8. Present you Part A findings in tutorial class. (4 marks)

(Total: 14 Marks)

Part B (16 marks)

Answer all THREE (3) questions.
1. Assume a country production possibilities frontier (PPF) is given below:

a. Explain the FOUR (4) assumptions behind the PPF curve. (1 mark)

b. During 2020 Covid-19 lockdown period, explain which point in the diagram above
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will indicate the production of Malaysia in 2020. (1 mark)

c. Explain impact of international trade on the location of the PPC curve above.
(1 mark)

d. List any TWO (2) factors that can shift the PPF inward. (1 mark)

e. Given the diagrams below:

(i) Explain both the US and China growth pattern in the future. (1 mark)
(ii) Explain how logistic supply problem in 2021-22 affect both country PPF.
(1 mark)

[Total: 6 Marks]

2. Given the following daily demand and supply schedule for ice-cream:

Price Number of ice-creams Number of ice-creams

of ice- Demanded Supplied
cream
($)
1.00 60 40
1.50 55 45
2.00 50 50
2.50 45 60
3.00 20 70
3.50 10 90

a. Explain how the market arrive at the equilibrium price and quantity for ice-creams
business? (1 mark)

b. If research shows that eating ice-creams can cause weight-gain and possible
diabetic, what will happen to the ice-creams market? (1 mark)

c. Explain what will happen to the final equilibrium price and quantity If labor wage
increases by 30%? (1 mark)

d. If more and more sellers are entering the market, explain how it affect the market.
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(1 mark)

e. If both demand and supply for ice-creams decrease simultaneously, explain what
will happen to the final equilibrium price and output. (1 mark)
[Total: 5 Marks]

3.
(a) You are choosing between two goods, X and Y, and your marginal utility from
each
is shown in the table below. Assume your income is $9 and the prices of X and Y
are $2 and $1, respectively.

Units of MUx MUx / Px Units of Y MUy MUy / Py

X
1 10 5 1 8 8
2 8 4 2 7
3 6 3 3 6
4 4 2 4 5
5 3 3/2 5 4
6 2 1 6 3 3
(i) Complete the table above. (1 mark)
(ii) what quantities of each will you purchase to maximize utility? (1 mark)
(iii) Assume that, other things remaining unchanged, the price of X falls to $1. What
quantities of X and Y will you now purchase? (1
mark)

(b) Given the short run production table below,

(i) Compute the marginal product and average product. (1 mark)

(ii) Explain whether the above production displays diminishing marginal product. (1 mark)
[Total: 5 Marks]

END OF QUESTION PAPER