TMA1 Year 2014

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Part 1

Questions  

a) In your opinion, the airline industry is considered to be in which market structure?

    Support your answer with THREE (3) reasons. (8 marks)

b) Using a diagram, explain the equilibrium position of MAS in the first quarter of 2014. (10 marks)

c) Discuss FIVE(5) ways considered by MAS in stepping up efforts to cut costs. (10 marks)

d) What are the TWO (2) plans of MAS which need to be held back because of the MH370 incident ? (6 marks)

e) Give TWO (2) ways (not mentioned in the article) how the MH370 has affected MAS. (6 marks)

Part 2  

Question 1

a) Distinguish between price elasticity of demand and income elasticity of demand. (8 marks)

b) Discuss the usefulness of these concepts in predicting the demand for

    i)   Rice
    ii)  Restaurant meals   (12 marks)

Question 2

a) Explain the terms ‘diminishing returns’ and ‘economics of scale’and distinguish these two concepts. (10 marks)

b) To what extent do economics of scale influence the size of a firm? (10 marks)

Question 3

a) Using the PEST analysis, discuss how various aspects of the business environment could influence a vegetarian restaurant in your country.(15 marks)

b) What other information that could have been missed out by using the PEST analysis? (5marks)