PAMANTASAN NG LUNGSOD NG MARIKINA

INSTITUTE OF GRADUATE SCHOOL

ECONOMIC ANALYSIS OF BUSINESS-MBA
1st Semester 2017-2018

ANSWER THE FOLLOWING BRIEFLY. CHOOSE FIVE (5) NUMBERS TO ANSWER

1. What is managerial economics? What role does it play in shaping business decisions? Briefly
discuss the six (6) steps involve in the prescription for sound managerial decisions.

2. As economic consultant to the dominant firm in a particular market, you have discovered
that, at the current price and output, demand for your client’s product is price inelastic. What
advice regarding pricing would you give?

3. What is the difference between normal profit and economic profit? Why is the former an
economic cost? How do you define accounting profit?

4. What is meant by product differentiation? By what methods can products be differentiated?

How does product differentiation affect the kind of competition and the degree of monopoly in
monopolistic competition?

5. What are the basic characteristics of public goods? How do public goods differ from private
goods? Is “economy in government” the same as “reduced government spending?” Explain the
distinction

6. Answer Question #1, a, and b in Questions and Problems of the chapter on Decision Making
under Uncertainty (Average back the decision tree…) pp532-533