Concepts of elasticities in making decisions, Managerial Economics

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Question 1:

"Anyone who is willing to learn the language of economics and take the time to practice making decisions can learn to be an effective manager." Explain how.

Question 2:

The management board wishes to investigate the demand for powdered milk in Mauritius.

(a) What do you consider to be the most important factors affecting the demand for milk?

(b) Explain how the various concepts of elasticities can assist in making decisions?

Question 3:

Discuss the factors influencing the decisions to enter the market of a product with which you may be familiar.

Question 4:

"Collusion is the likely outcome in every oligopolistic industry". Discuss.

Question 5:

"Profit is maximised when marginal revenue is equal to marginal cost. This must be the only way to reap maximum profit." Do you agree? Use examples to illustrate.

Question 6:

Describe why government intervenes and how these affect managerial decisions?


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