8. Explainfivefactors that may account for the survival of small firms in an industry.18.-PRODUCT MARKETS1.Explain fivecharacteristic of a monopolistic market. 2.By use of a diagram, explain how price and output are determined in a collusive oligopoly (centralized cartel) market situation3. Highlight fivedifferences between perfect competition and monopolistic competition 4.Using a well labeled diagram, explain how a monopolist enjoy a supernormal profit inboth short and long run5. Highlight fivedistinctions between perfect competition and monopolistic firms 6. a) With the aid of a diagram, explain how a firm under monopolistic competition is atb) With the aid of a diagram, explain the differencebetween perfect competition and monopoly equilibrium in the short run19. CHAIN OF DISTRIBUTION1.Explain five possible effects that would result if wholesalers were eliminated from a chain of distribution
2.Manufacturers distribute their products to the final consumers through various channels. 3.Explain circumstances under which a producer would sell directly to retailers 4.Discuss the factors that influence the choice of distribution channel5.Outline six circumstances under which a manufacturer may prefer to sell goods directly to consumers 20. NATIONAL INCOME1. Explainfiveuses of national income statistics to an economy 2.The gap between the rich and the poor is so wide In Kenya. Highlightfivefactors that contribute to this disparity in income distribution.3. Explainfivelimitations of using per capita income as a measure of the standard of living in a country4. Outline fiveproblems that are encountered in measuring National income in your country5. (a) Explainfivelimitations of using per capita income to compare living standards of people in different Countries(b) High national income may not necessarily mean better welfare for the citizens of that country. Explain7.a) A newly industrialized country with a population of 40 million people, had its nationalincome estimates during the year 2009 as follows:Value in Kshs (million)Exports250000Consumption expenditure624000Investment300000Government spending416000Imports210000Depreciation10000Net indirect taxes50000Required:a) (i) Calculate the GNP per capital of the countryii) Outline limitations of using GNP pr capita in measuring the standard of living of accounts b) Discussfiveproblems that are encountered in measuring National income in your country. 21. -POPULATION AND EMPLOYMENT
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