QT.KT.001/BM01 For: WRITTEN EXAM FOREIGN TRADE UNIVERSITY FINAL EXAM PAPER SCHOOL OF ECONOMICS & INTERNATIONAL BUSINESS BUSINESS ECONOMICS (KTE312E) _ PAPER NO.: Delete this box if unnecessary Phase Semester Academic year: 2021 – 2022 Full-time Class: K59 – Advanced program Date: 28/12/2021 Time: 15h00-16h00 Duration: 60 minute Analyse the advantages of manager-controlled firms Is this kind of firms getting more popular in Vietnam, why? (3 points) Explain your understanding about economies of scale and economies of scope Give example for each of the types (1 point) Two firms in the market produce their products with the following information: (2 points) The market demand curve is Q = 95-P; Cost function is TC(Q)=1.5Q2-5Q+10 for each firm Assume that two firms compete with each other under Cournot: a What is each firm's response function? Draw the graph showing two firms' reaction (1.5) b What is the optimum quantity and price for each firm? What is the value of each firm's profit? (0.5) We obtain the estimation results of quantity demanded of beans of households a certain country as follows: (4 points) Variable Log of beans price Log of maize price Log of gari price Log of yam price Log of rice price Log(Household size) Log(Household income) Beans Maize Gari Yam Rice 0.0509*** -0.0166*** -0.0009 -0.0234*** -0.0103* -0.0166*** 0.0490*** 0.0003 -0.0105** -0.0137*** -0.0002 -0.003 0.0015* -0.0178*** 0.0045* -0.0236*** -0.0187*** -0.0059*** 0.0465*** 0.0052 -0.0103* -0.0137*** 0.0045* 0.0052 0.0095*** 0.0043 -0.0023 -0.0001 -0.0101** 0.0075** -0.0088 -0.0155** -0.0040** 0.0063** 0.0252** Where: ***, **, * denote 1%, 5% and 10% statistical significance The demand function has the form: LogQrice = f(log(X)) LogQrice denotes natural logarithm of demanded quantity of beans X is a matrix including beans price, maize price, gari price, yam price, rice price, household size, household income a Analyze: - The effects of each determinant on demanded quantity of beans (2 points) - The effect of price of beans on the demanded quantity of other goods? (1 point) b How could you categorize beans, maize, gari, yam and rice into different groups of goods on the basis of the effect of income on demanded quantity? (1 point) End of test -Note: - This paper contains questions - Students could use any material during the examination - Invigilators will not provide further explanation EXAM PAPER APPROVAL ... income on demanded quantity? (1 point) End of test -Note: - This paper contains questions - Students could use any material during the examination - Invigilators