Contents

• This paper answers the following questions -
• Question 1:
• Write your views on the relationship between the fundamentals of Managerial Economics and Decision Making styles. Support your answer with an organizational case example.
• Question 2:
• Explain the features of Michael Porter’s “Five Competitive Forces” and how does it impacts the Zero Sum economics. Apply this model to your choice of industry and provide your conclusions with reference to the chosen industry.
• Question 3:
• Explain with example and graphically, how demand and supply lead to best pricing strategy for the organization. Apply this to two competitive products in the market and show how the principal of Cost Leadership impacts the economies of scale.
• Question 4:
• Identify different types of Costs and how they impact the profitability of an Organization.
• Question 5:
• A market failure occurs when the supply of a good or service is insufficient to meet demand. This results in an inefficient distribution of resources among market participants. Hence government need to intervene to bring efficiencies. Explain any four tools available for government interventions to deal with the market failures with suitable examples.

Description

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