AREC-482-UNKNOWN-2000-Other-121ac349-d0f4-40a1-8313-e86ccdfeb930 (1)

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Grant MacEwan University *

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107

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Finance

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Jan 9, 2024

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University of Alberta, Dept. of Rural Economy AGEC 482 (Cooperatives and Alternate Business Institutions) 2000 Winter Midterm Examination February 14, 2000 Instructor: Kwamena Quagrainie Time: 50 minutes Answer all Questions. Please be brief, clear and concise. Diagrams may be helpful in some of your explanations. Marks PART I 10 (1) What is “free riding”? Give four examples of this phenomenon in a cooperative. 10 (2) Cooperatives worldwide are governed by some seven cooperative principles. List them. What is the importance of these principles? 10 (3) What is “vertical integration”? How are cooperatives a form of vertical integration? 10 (4) What is “ consumer surplus ”? Explain the importance of this concept in the model of a consumer cooperative . PART II 20 (1) What is “Ramsey pricing”? Illustrate circumstances under which a cooperative manager will adopt this type of pricing policy. 20 (2) Sometimes, though it is not profitable to serve a market, it may be beneficial for a producer cooperative to serve the market. Illustrate with examples where such a situation can occur. 20 (3) The average revenue pricing policy is the best policy among the alternative pricing policies for a producer cooperative. Is this statement true or false or true under certain conditions? Explain.
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