Waec Model Questions Vol1 2022 Economics Question 6

Practice essay / theory question 6 from the 2022 Waec Model Questions Vol1 Economics examination. This question covers Market Structures, Price Determination, Government Intervention .

Waec Model Questions Vol1 2022 Economics Essay / Theory
Topics: Market Structures Price Determination Government Intervention
Question 6 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • essay

The market for cassava in a Nigerian state exhibits the following characteristics: (i) 150 small‑scale farmers each supply an identical quantity of cassava; (ii) the prevailing market price is N50 per kilogram; (iii) if a farmer tries to sell at N55 per kilogram, buyers immediately purchase from other farmers; (iv) there are no significant barriers to entry or exit; (v) the average total cost (ATC) per kilogram for a typical farmer is N45 and marginal cost (MC) is constant at N45.

Question Parts

( a )
Identify the market structure that best describes this cassava market and justify your answer with at least three relevant characteristics.
( b )
Using the cost information provided, explain how the market price is determined in the short run and state the likely economic profit per kilogram for a typical farmer.

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About This Question

This is Waec Model Questions Vol1 2022 Economics Question 6. It is one of the essay questions from the 2022 Waec Model Questions Vol1 Economics examination.

The question covers Market Structures, Price Determination, Government Intervention .

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