KIndly Answer question 2.

SECTION B QUESTION ONE (15 MARKS) a) Wells Fargo International, a pperfectly competitive firm sells winter coats for dogs. Each coat sells at Ksh.72. The xed costs of production are Ksh. 100. The total variable costs are Ksh.64 for one unit, Ksh.84 for two units, Ksh.114 for three units, Ksh. 184 for four units, and Ksh.270 for five units. i. In the form of a table, calculate total revenue, marginal revenue, total cost and marginal cost for each output level (one to five units). (5 marks) ii. What is the profit maximizing quantity? (2 marks) b) Most developing countries have failed to realize the benefits of international trade. With reference to this statement, briey discuss any four reasons behind this (8 marks) QUESTION TWO (15 MARKS) a) Does international trade, taken as a whole, increase the total number of jobs, decrease the total number of jobs, or leave the total number of jobs about the same? (3 marks) b) Fly Emirates air travel in business class has an estimated elasticity of demand of 0.82, while its economy class has an estimated price elasticity of 0.14. Why do you think this is the case? (2 marks) 0) The table below shows the production possibilities schedule for an economy. Machines per period Food per period Alternative Putting capital goods per period on the horizontal axis and consumer goods per period on the vertical axis, graph the production possibilities curve for the economy. (4 marks) ii. If the economy is producing at alternative B, what is the opportunity cost to it of producing at alternative C instead? (1 marks) iii. If the economy is producing at alternative C, what is the opportunity cost to it of producing at alternative D instead? (1 marks) iv. Is it possible for this economy to produce 30 units of food per period while producing 1 unit of Machines? Would this combination of goods represent efficient or inefficient production? Explain. (4 marks) QUESTION THREE (15 MARKS) a. All other things unchanged, what happens to the demand curve for Uber taxis if there is Page 6 of 8