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Managerial Economics Essay

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Below is an essay on "Managerial Economics" from Anti Essays, your source for research papers, essays, and term paper examples.

JUNE SEMESTER 2012
MANAGERIAL ECONOMICS – BMME5103
ASSIGNMENT (60%)


Question 1
a. What is (are) the main difference(s) between a monopolistically competitive market and a monopoly market?
(5 marks)
b.   Explain how the presence of product differentiation influences the way in which firms in a monopolistically competitive market set their prices, as compared to firms operating in a perfectly competitive market.
(5 marks)
c. Explain why firms in both perfectly competitive and monopolistically competitive markets earn zero economic profits in the long run. Contrast the long run adjustment process for the two market structures.
(5 marks)
d.   Firms in monopolistically competitive markets provide consumers with the benefit of product variety. Discuss.
(5 marks)


  [TOTAL: 20 MARKS]

Question 2

Given the following data for a firm:


                Q TFC ($) TVC ($)

|0       |200             |0                 |
|1       |200             |50               |
|2       |200             |90               |
|3       |200             |120               |
|4       |200             |160               |
|5       |200             |220               |
|6       |200             |300               |
|7       |200             |400               |
|8       |200             |520               |
|9       |200             |670               |
|10       |200             |900               |


  a. For each of the levels of output shown above, calculate the following:
            i) total cost (TC)
          (2 marks)
          ii) average fixed cost (AFC)
          (2 marks)
          iii) average variable cost (AVC)
          (2 marks)
          iv) average total cost (ATC)
          (2 marks)
            v) marginal cost (MC)
          (2 marks)
  b. Why is MC the same when computed from either TVC or from TC?
    (2 marks)
  c. Sketch a graph showing AVC, ATC and MC.
(2 marks)

  d. Explain how we can determine the value of AFC from this...

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"Managerial Economics". Anti Essays. 13 Nov. 2018

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Managerial Economics. Anti Essays. Retrieved November 13, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Managerial-Economics-474558.html