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RVU Eco Assignment

managerial course

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Daniel Lakew
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76 views3 pages

RVU Eco Assignment

managerial course

Uploaded by

Daniel Lakew
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Rift Valley University

MBA Program
Course Title: Managerial Economics
Course Code: BADM - 641
Credit Hours: 2

Topics to be prepared
1. Explain Pricing practice
a. Price Discrimination
b. Non-Marginal Pricing
c. Multiproduct pricing
d. Peak-load pricing
e. Transfer pricing
f. Elasticity of demand
2. Cost and production theory: as you know the cost theory is the reflection of the
production theory. Thus, use graphs to show the link between both theories and elaborate
it broadly.
3. Broadly elaborate the Marginal Rate of Substitution and indifference curve
4. Broadly compare the market structure, and show the market that set higher prices, and
produces lower (Mathematical)
5. Suppose the individual demand function of a product is given by:
Q=20 – 2P and there are about 100 identical buyers in the market. Then the calculate the market
demand function
6. Show graphically the shift in the demand curve due to the change in some factors
affecting it (show it at least for 3 main factors)
7. Explain price, income and cross elasticities for both demand and supply
8. What are factors affecting supply?
9. Based on the following table which indicates the expenditure of the household on
commodity, answer the questions that follow (The price of the good is Br.10)
Income
(Br / month) Quantity Demanded
(units/month)
10,000 50
20,000 60
30,000 70
40,000 80
50,000 90
A) Calculate income elasticity of demand, if income increases from Br.10, 000 to Br.
20,000 and if income increases from Br.40, 000 to Br. 50,000.
B) Is this a normal or an inferior or a luxury good? Justify.
C) Does the proportion of household income spent on this good increase or decrease as
income increases? Why?
10. When the price of tea in a local café rises from Br. 10 to 15 per cup, demand for coffee
rises
from 3000 cups to 5000 cups a day despite no change in coffee prices.
A) Determine cross-price elasticity.
B) Based on the result, what kind of relation exists between the two goods?

12. A firm's production function is described by the following equation 𝑸=𝟏𝟎,𝟎𝟎𝟎𝑳−𝟑𝑳


11. Discuss the approaches measuring utility and indifference curve

𝟐 where L stands for the labor units


a. Calculate the output maximizing labor level.
b. What is max. output
13. Given a utility function U =X 0.5 Y 0.5 and if the consumer has birr100 to spend on two
goods X and Y with prices birr 3 and birr 5 respectively. Then drive,
a. The equation of the budget line and sketch the graph.
b. Utility maximizing combinations of X and Y and use the indifference curve to
show the max. point
c. Calculate the marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and
interpret your result.
14. Suppose that the short-run production function of a certain cut-flower firm is given by:
Q=4KL-0.6K2 -0.1L2 where Q is the quantity of cut-flower produced, L is labor input and
K is fixed capital input (K=5).
a. Determine the average product of labor (APL) function.
b. At what level of labor does the total output of cut-flower reach the maximum
c. What will be the maximum achievable amount of cut-flower production?
15. Explain the relationship between short-run production and cost functions
16. Explain and summarize each market structure

17. Explain in detail the three types of economic systems. Briefly explain which type of economics
system you prefer to operate under as a technology professional and why. Give a brief
justification.
18. Briefly define Micro and macroeconomics and explain the difference
a. Explain the goals of Macroeconomics.
b. Discuss the types of National incomes and the approach to measure each.
c. Discuss nominal vs real GDP
d. Define GDP deflator and CPI, and compare both
e. Discuss the business cycle in detail (use your examples to explain each business cycle)
f. Discuss the problems of Macro economics
g. Discuss the macroeconomic policy instruments in detail.

Submission Deadline: with the final exam.

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