Managerial Economics#4

Course Code: SL EC 501

Name: Date:12/07/18
Student ID:
Section: Marks: 20
Instructor: Swati Pathak

Answer All the Questions.

Use diagram to answer questions.

You have 25 minutes to complete the exam. Good luck!!!!

1. The table below contains information about the total utility Jerry gains from coffee he
buys from the Corner Shop.

a. Add one more row for MU of coffee.

b. Does this example exhibit the Principle of diminishing marginal utility? Explain.
c. Draw total utility and marginal utility curve in this context.
d. Cups of State two equi-
marginal 1 2 3 4 5 principles
coffee
Total (2+2+4+2)
1.50 2.70 3.60 3.60 2.00
Utility

3. Based on two videos you watched on “Demand Forecasting”,

Answer the following questions.

Q1. What are some of the existing tools and techniques for forecasting demand? 5+5
Q2. Why it is important for companies to consider new forecasting techniques and what are
some of the new techniques being used?

(DO NOT COPY PASTE FROM ANY SOURCES; ANSWERS NEED TO BE IN YOUR OWN
WORDS AND UNDERSTANDING AFTER WATCHING TWO VIDEOS).
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