KCSE Business Studies Topical Questions and Answers

Describe five characteristics of a monopolistic competitive market. (10 marks)

11/12/2020

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Characteristics of a monopolistic competitive market

Characteristics of a monopolistic competitive market.

There are many independent buyers and sellers of the commodity.
The products are close substitutes/differentiated /similar but differ by names shape/colour package! scent.
Free entry / exit - there are no barriers for new firms that require to supply the same commodity nor arc there barriers for those wishing to exit the market. Firms’ decision to enter or leave is influenced by profits or losses.
Wide knowledge of market. As buyers /sellers are aware of price/output market factors conditions.
Firms set their own prices - prices are set depending on cost incurred and demand in the market.
No single firm controls any factor of production - firms acquire factors at prevailing market prices / conditions.
Individual firms have highly elastic/gently sloping demand curve since commodities are close substitutes.
It is possible for a single/some firms to dominate/influence market price through extensive advertising/product promotion/differentiation.
All firms earn normal profits in the long run since supper normal profits attract new firms/losses make forms to leave/quit.

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Outline four disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution. (4 marks)

8/12/2020

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Disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution

Disadvantages to the manufacturer if wholesalers are eliminated from the chain of distribution include:

Manufacturer will have to break bulk;
Incur cost of storage;
Incur cost of transporting goods to the retailers;
Incur cost of advertising I promoting products;
Bear risks associated with distribution eg. damages, fall in prices;
Manufacturer will have to prepare goods for sale eg. blending, branding, sorting etc;
Manufacturer will have to carry out market research;
Manufacture will have to give credit to retailers who are many.

disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution

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Outline three characteristics of basic human wants

8/5/2020

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Outline three characteristics of basic human wants.

(3 mks)

ANSWER

They are essential for survival
They cannot be permanently satisfied
They are universal

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Classify each of the following goods as either producer or consumer

8/5/2020

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Classify each of the following goods as either producer or consumer

3 MARKS

ANSWER

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Highlight four ways in which business studies is useful to a community

8/5/2020

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Highlight four ways in which business studies is useful to a community

Enable trade to take place
Bridges the gap between the producer and consumer through transport
Informs consumers about good and services available i.e. where they can be found, their prices, Uses etc
Provide storage facilities/ warehouse
Provides safe places for keeping money, opportunity for borrowing banking
Protects trade against risk though insurance

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Classify each of the following goods as either producer or consumer

9/9/2019

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Classify each of the following goods as either producer or consumer (3mks)

	Good	Classification
a)	Factory
b)	privates car
c)	Iron ore
d)	Tools
e)	Exercise books
f)	Clothing

	Good	Classification
a)	Factory	producer
b)	privates car	consumer
c)	Iron ore	producer
d)	Tools	producer
e)	Exercise books	consumer
f)	Clothing	consumer

Describe five characteristics of a monopolistic competitive market. (10 marks)

Characteristics of a monopolistic competitive market

Outline four disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution. (4 marks)

Disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution

Outline three characteristics of basic human wants

Outline three characteristics of basic human wants.

Classify each of the following goods as either producer or consumer

Classify each of the following goods as either producer or consumer

Highlight four ways in which business studies is useful to a community

Highlight four ways in which business studies is useful to a community

Classify each of the following goods as either producer or consumer

Classify each of the following goods as either producer or consumer (3mks)

Good

Classification

a)

b)

c)

d)

e)

f)

Good

Classification

a)

b)

c)

d)

e)

f)

Categories

Categories

Archives

Describe five characteristics of a monopolistic competitive market. (10 marks)

Characteristics of a monopolistic competitive market

Outline four disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution. (4 marks)

Disadvantages that a manufacturer would suffer if wholesalers were eliminated from the chain of distribution

Outline three characteristics of basic human wants

Outline three characteristics of basic human wants.

​Classify each of the following goods as either producer or consumer

​Classify each of the following goods as either producer or consumer

Highlight four ways in which business studies is useful to a community

Highlight four ways in which business studies is useful to a community

Classify each of the following goods as either producer or consumer

​Classify each of the following goods as either producer or consumer (3mks)

Good

Classification

a)

b)

c)

d)

e)

f)

Good

Classification

a)

b)

c)

d)

e)

f)

Categories

Categories

Archives

Classify each of the following goods as either producer or consumer

Classify each of the following goods as either producer or consumer

Classify each of the following goods as either producer or consumer (3mks)