Question 1:
(i) What are techniques of demand forecasting?
(ii) The manager of Hotel Company wants to forecast the demand for tourism. Describe fully how you would forecast the demand for tourism.
Question 2:
(i) Illustrate fully the relationship between cost and output in the short run and in the long run.
(ii) Illustrate how an understanding of the relationship between short run and long run average cost curve can be helpful for managerial decision making.
(iii) What do you understand by the term ‘learning curve’?
Question 3:
(i) Using relevant instances, describe fully price discrimination as a pricing strategy.
(ii) Contrast TWO models of oligopoly, and describe clearly how price and quantity is determined for each model.
Question 4:
(i) Describe fully how markets generate externalities? Support your answer with relevant examples.
(ii) Describe the policies which the government can use to correct externalities which are created by business activities.