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Thursday, August 17, 2006


Fuji the dismal science rep says:

As asked to, the new question one of the timed assignment for 28 August (next, next monday):

Question One
TYS Nov 2002
In the UK, train tickets may be obtained more cheaply if they are
bought in advance. In August 2000 the railway companies jointly
announced that these cheap tickets would be available only at major
stations. Passengers living near smaller stations would, therefore,
have to pay the full cost of the ticket.
(a) Explain what is meant by price discrimination and discuss
whether this is an example of price discrimination. [10]
(b) Identify the type of market structure that enables companies to
practise price discrimination, and discuss whether that market
structure is ever beneficial to consumers. [15]

Question Two
TYS N1998
In August 1996, for what was thought to be the first time in the
African sub-continent, a private company was contracted by the
government to manage electricity distribution in Northern Namibia.

(a) Explain why governments throughout the world have been involved
in the supply of services such as electricity. [12]
(b) Discuss on the policies that governments can use to regulate
these companies. [13]

6:32 PM}

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06:a13
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