FACULTY OF COMMERCE AND LAW

MASTER OF BUSINESS ADMINISTRATION

MBAZ505: MANAGERIAL ECONOMICS

May 2018

Time: 3 Hours

INSTRUCTIONS

Answer any four questions

Each question carries 25 marks.

Each question should start on a fresh answer sheet.

Marks will be awarded for clear, concise and practical illustrations.

All Answers must be written in Answer Books provided.

MBAZ505: MANAGERIAL ECONOMICS

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ANSWER ANY FOUR QUESTIONS

1. (a) Discuss the main assumptions of the classical theory of the firm. [10]

(b) To what extent can the classical theory of the firm be used to explain
business objectives and today’s business model? [15]

2. Evaluate the usefulness of Porter’s Five Forces Model in taking business

decisions. [25]

3. Assuming that you are the manager of a supermarket company operating in

Zimbabwe, highlight the importance of a knowledge of elasticities of demand and
supply in your business decision making. [25]

4. The aim of economic forecasting is to reduce the risk of uncertainty that the firm
faces in its operational decision making. Discuss five techniques which can be
used to forecast demand in the fertiliser manufacturing industry in Zimbabwe.

[25]

5. You are the manager of a reputable five star hotel operating in the Eastern
Highlands of Zimbabwe and you have been asked by the director of the hotel to
advise on possible pricing strategies to increase revenue. Describe five
strategies that you would recommend and why? [25]

MBAZ505: MANAGERIAL ECONOMICS

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