conventional microeconomic principles/Marcoeconomic


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conventional microeconomic principles/Marcoeconomic 1 answer below » Task A – 20% of your final mark
(LO1) Answer two of the three questions below in 600 words or fewer using diagrams to
illustrate your answers. Each question answered is worth 10% of your overall
mark for the module. 1.A consumer splits their income equally between two goods. If the price
of one good increases by 10% and their income increases by 5%, show that the
consumer’s optimal consumption bundle will change despite them being able to
afford their original bundle. 2.When estimating a demand function, explain why fitting a line of best
fit through observed price and quantity combinations View complete question » Task A – 20% of your final mark
(LO1) Answer two of the three questions below in 600 words or fewer using diagrams to
illustrate your answers. Each question answered is worth 10% of your overall
mark for the module. 1.A consumer splits their income equally between two goods. If the price
of one good increases by 10% and their income increases by 5%, show that the
consumer’s optimal consumption bundle will change despite them being able to
afford their original bundle. 2.When estimating a demand function, explain why fitting a line of best
fit through observed price and quantity combinations over time is not likely to
yield good estimates. 3.If a firm uses only capital and labour, show why the cost minimising
combination of inputs sets: . This task is intended to
assess your knowledge of conventional microeconomic principles (part of LO1). The
word count is deliberately tight in order to force you to prioritise the most
important arguments/explanations in your answers. Providing clear and concise
explanations of the most important aspects will lead to good marks. Your
answers should be written in an academic style. Diagrams are essential.
It is impossible to produce a good answer to these questions without using a
well-chosen, and well-drawn, diagram. Do not simply present a diagram without
carefully explaining it in the text. Use diagrams to save words and explain
them to illustrate your answer. Task B – 80% of your final mark (LO1,
LO2 & LO3) Select a (domestic) [1] public limited company of your choice which has some degree of market power. In
an essay of 2400 words or fewer, evaluate the pricing strategies it employs for
its core product/business in order to increase its market share and
profitability within its industry (at the national level). Task B must be written as an essay. You will need
to build up a case study based on a company of your choice. You must first
demonstrate that the company has some power to set its own price (that is, it
has some degree of market power) – e.g. what is the structure of the industry
it operates in? What is its market share for the product? How concentrated is
the industry? You must then use
economic analysis to evaluate the pricing strategies your firm has adopted for
its main product(s). Make clear comparisons between the predictions of the economic
theories covered in the module and the empirical evidence for your firm. Are
the strategies adopted by the firm optimal? If so, why? If not, why not? How
might they be improved? [1] Select a domestic company for the
country you study in, unless instructed otherwise. For example, if you are a
student in the UK, you must select a UK company and analyse its UK industry. If
you study in another country, select a company equivalent to public limited
company in this country (e.g., SA in France, Spain, SPA in Italy etc.). Attachments: Econ-Assignme….docx MOD001047-Bus….doc View less » Feb 24 2014 10:22 PM

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