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