1. How does the study of managerial economics help a business manager in decision making?

Illustrate
your answer with examples from production and pricing issues.
2. Managerial economics is the integration of economic theory with business practice for the purpose of
facilitating decision-making and forward planning of a manager.’ Explain with examples.
3. (a) Discuss critically the survey methods of demand forecasting.
(b) Discuss critically the statistical methods of demand forecasting.
4. (a) Explain the following concepts separately:
(i) Price elasticity of demand
(ii) Cross elasticity of demand and
(iii) Income elasticity of demand.
(b) Explain the relationship between marginal revenue, total revenue and price elasticity of a
product.
(c) What useful information do concepts of elasticity provide to management?
5. (a)What is the difference between long run and short run for a firm?
(b) Distinguish between laws of returns to a factor and laws of returns to scale.
Explain how do the firms’ costs differ in the two time periods?
6. Explain and illustrate the determination of equilibrium price and output under monopolistic
competition in the short run.
7. Explain how the firm’s long run equilibrium differs from its short run equilibrium.
8. Differentiate between the kinked demand curve model and the dominant firm model of oligopoly.
9. Explain and illustrate the determination of equilibrium price and output under the dominant firm model
of oligopoly.
10. Differentiate between monopoly and perfect competition.
11. What is meant by price discrimination?
12. Explain fully third degree price discrimination.
13. Why is third degree price discrimination more common than the first and second degree price
discrimination?
14. What are the necessary conditions for price discrimination?
15. Why do firms move towards a global business? Explain the strategic considerations for firms to be
successful in the global business environment
16. Why do firms move towards a global business? Explain the strategic options available to firms to be
successful in global business environment.