IIBM MULTIPLE ANSWERS – When variable cost is zero, the total cost will be? a) Equal to variable cost b) Equal to fixed cost c) Equal to average variable cost d) None of the above
IIBM MULTIPLE ANSWERS – When variable cost is zero, the total cost will be? a) Equal to variable cost b) Equal to fixed cost c) Equal to average variable cost d) None of the above
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Agribusiness Management
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choices:
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Document that projects the income, expenses, and profits of a business over a multi-year period (1)
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a) Financial plan
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b) Legal plan
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c) Management plan
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d) Operating plan
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The written description of all aspects of an agribusiness.
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a) Business plan
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b) Financial plan
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c) Management plan
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d) Legal plan
III. The time between the beginning of a process or project and the appearance of its results: (1)
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a) Benefit
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b) Cost per click
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c) Lead time
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d) Spot advertisement
When variable cost is zero, the total cost
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A TV advertisement placed on one station in one market (1)
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a) Lead time
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b) Benefit
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c) Spot advertisement
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d) Cost per click
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Mines and Fishes are subject to the law of:
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a) Diminishing return
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b) Increasing return
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c) Constant return
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d) None of the above
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Which of this statement are correct?
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a) Agriculture economic may be taken as the branch of both of agriculture and economics
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b) Agriculture economic is more intimately related to economics then to agriculture
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c) Agricultural economics is nothing but application of economic principles to agriculture
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d) All of these
When variable cost is zero, the total cost
VII. Name the market in which permanent or durables commodities are traded: (1)
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a) Long period market
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b) Short period market
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c) Secular market
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d) Bullion market
VIII. Net return per hectare is: (1)
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a) Overall efficiency measure
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b) Partial efficiency measure
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c) Specific efficiency measure
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d) None of the above
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When variable cost is zero, the total cost will be?
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a) Equal to variable cost
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b) Equal to fixed cost
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c) Equal to average variable cost
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d) None of the above
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For purchasing of seeds, fertilizers, etc., the loan distributed is called: (1)
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a) Short term loan
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b) Long term loan
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c) Medium term loan
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d) All of the above
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When variable cost is zero, the total cost
Part Two:
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What is the role of agrochemicals in increasing food production? (5)
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Where can you find good marketing research materials if you are a farmer? (5)
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What is commercial agriculture? (5)
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What are the types of commercial agriculture? (5
When variable cost is zero, the total cost
Caselet 1
The MP3 generation in India has nothing to cheer about. Entry-level prices of MP3 players in the organised retail sector have collapsed to Rs. 1000 price point. While similar low priced MP3 players were available in the grey market in India, now some of these small time brands have found a ready buyer in the emerging organised retail chains fuelling growth in overall demand. Large brands were available at price points starting at about Rs. 4000 at the entry level in 2006. According to research firm Mintel, sales of MP3 players dramatically decreased in 2012 due to the emergence of smartphones. Sales of MP3 players dropped by almost $177 million, or 22%, to $613 million this year when compared to figures of 2011. Mintel believes that sales will halve again by 2017. In its “worst case” scenario, it foresees that sales of MP3 players could decrease to $40 million within five years. The popularity of smartphones, which performs the same functions and also offers the ability to make telephone calls, connect to the Internet and access apps, in recent years (especially during 2012) has diminished the need for MP3 player functionality, which makes owning an iPod unnecessary. By the autumn of 2010, around 275 million iPods had been sold globally.
However, Samuel Gee, a technology analyst at Mintel, said that the decline in MP3 sales is “unlikely to reverse”. It is impossible to talk about the current PMP market without extensive reference to smartphones. The devices have directly contributed to the sharp decline in the value of PMP sales. MP3 players are being “steadily outshone” by affordable new technologies including smartphones. Ian Fogg, a technology analyst at research company IHS, added that smartphones are becoming as popular as the iPod once was. Apple recently confirmed that it had sold 5.3 million iPods globally within its most recent financial quarter, representing a decrease of 19% when compared to the same period in 2011.The convenience of a smartphone is greater than an MP3 player because it is always with someone. It also provides more choice of mobile music because someone can playback their own music, as they can on a MP3 player, but they can also access other music services like Last FM or Spotify. Therefore, there is a greater choice of music available. According to figures released in October 2012, morn than one billion smartphones have been purchased globally.
Consulting firm Strategy Analytics said that increasing demand for smartphones is likely to increase that figure to over two billion within the next three years. Stuart Dredge pointed out that the falling sales figures of devices like the MP3 player clearly indicate how people are now using their smartphones for everything rather than having multiple gadgets stuffed into their pockets or purses. He said, “We used to have three or even four separate devices before. Now music player, camera, watch and so much more are all encompassed in one device — the smartphone.” Recent research done by Deloitte suggests that applications are the main reason for the reduced usage of multiple devices. The results show that 42% of mobile application users have either reduced or completely eliminated their usage of the MP3 players. They also show that application users are also more likely to have left their GPS systems and personal gaming consoles as well because you can get the complete experience on your smartphone. Spotify, Rdio and Pandora radio are some of the most popular music applications available for Smartphones. They save you the hassle of having to build your own music library as long as you have a decent Internet connection. The only reason a few people are still using MP3 players is because they’re smaller, lighter and cheaper while giving you greater storage just for your music with considerably longer battery life. For example, the SanDisk Sansa Clip + MP3 player with 4 GB of storage costs a mere $30 on Amazon. If you want to go a step further and get a waterproof MP3 player, you can still get one for under $45 on Amazon. But the future of this product seems to be bleak.
When variable cost is zero, the total cost
Questions
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Discuss the role of technology in this case.? (10)
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How do smartphones pose threat to MP3 players? (10)
Caselet 2
After the buoyant growth in the LCD TV market in India, it’s the turn of the LCD monitor industry to capture the growth figures. the LCD monitor industry crow market is bolstering the market in a big way to lure consumers. over 100% growth, the Rs. 440 Promotional campaigns and price cuts je other incentives being doled out by companies to help consumers adopt the LCD technology. Prominent players in the market such as Samsung, LG, Philips and Acer are reviving up to capture the increasing demand. because they expect the industry worth Rs. 1260 crore— a 200% jump m value terms by the year end. With the display market in India changing rapidly, there is a visible tilt being seen towards TFT LCD monitors, which is far outpacing the growth of the conventional CDT monitors. In 2005, the CDT monitors had around 90% share of the overall monitor business, whereas in 2006 the conventional monitors were expected to only have a 75% market share. Besides, there is also a shift away from 15 inch to 17 inch within the LCD category. “The LCD phenomenon seems to be extending beyond TV to monitors and our TFT LCD monitor business is expected to contribute 20% by volume and 35% by value to our total colour monitor business this year.
LCDs are expected to garner 25% share of the overall monitor market” says VP, Samsung India. For Samsung, while retail contributes 70% of the monitor business, OEMs take up 30% of the share. Earlier this year, Samsung had launched a promotional campaign ‘Awesome Twosome” wherein, consumers could upgrade to 17 inch screen size and would receive a printer worth Rs. 8490 free with every purchase. LG, on the other hand gave away Reebok gift vouchers and multi-function printers to woo consumers, primarily targeted at household buyers. Despite the home segment contributing a fair chunk of the LCD monitor business, the corporate business is also adding volumes. The likes of BPOs, financial institutions and SMBs are the core groups. Due to price cuts the household buying and upgradation has taken off in a big way but the volume growth is still coming from the service industry and also from SOHO (small office home office) says GM of LG Electronics India Ltd. Philips does not consider the business to be very big as it only has a market share of 7.5%. In terms of pecking order in the first quarter of 2006, Samsung with 41% had the largest share of the market. LG was next with a share of 24%.
When variable cost is zero, the total cost
Questions
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What are the opportunities present in this case? (10)
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Explain the SWOT analysis of LCD monitors? (10)
Section C: Applied Theory (30 marks)
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What is the difference between agriculture and agribusiness? (15)
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What are the types of agribusiness? (15)
When variable cost is zero, the total cost
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