CONFIDENTIAL AGU asiaeuniversity FINAL EXAMINATION JANUARY 2016 SEMESTER SUBJECT CODE : MEC604 SUBJECT NAME : MANAGERIAL ECONOMICS LEVEL : MASTER'S DEGREE TIME / DURATION : 2.00 PM -5.00 PM (3 HOURS) DATE : 7MAY 2016 INSTRUCTIONS TO CANDIDATES 1) Please read the instruction in the question paper CAREFULLY. 2) This question paper is printed on both sides of the paper. 3) This question paper consists of TWO (2) SECTIONS, SECTION A and SECTION B. 4) Answer THREE (3) questions SECTION A and TWO(2) questions in SECTION B. 5) Please write your answer in the answer booklet provided. 6) Answer all questions in English. THERE ARE TWO (2) PAGES OF QUESTIONS, EXCLUDING THIS PAGE. |MEC604_ MANAGERIAL ECONOMICS_0116CONFIDENTIAL SECTION A (TOTAL: 60 MARKS) INSTRUCTIONS: ANSWER THREE (3) QUESTIONS ONLY. Please use the answer sheet provided. QUESTION 1 What is meant by economic costs and economic profits? How does the economic profits 4iffer from accounting profits? [20 marks} QUESTION 2 What is price discrimination? Explain with an example from the Airline Industry. [20 marks] QUESTION 3 AA firm has the following revenue and cost functions: TR = 800-20? TC = — 500+200+Q2 Determine the level of output at which the firm maximizes its total profit [20 marks] QUESTION 4 Price stability is a common feature of the oligopolistic market structure. Please elaborate. [20 marks] QUESTION 5 Write short notes on- a) Elasticity of Demand — concept and uses b) Law of Diminishing Returns — implications for the short-run cost curve c) Regression Analysis - method and its uses {20 marks] LECONOMICS_0116CONFIDENTIAL SECTION B (TOTAL: 40 MARKS) INSTRUCTIONS: ANSWER TWO (2) QUESTIONS ONLY. Please use the answer sheet provided. QUESTION 1 What is meant by economic recession? Briefly discuss the fiscal and monetary policies which are used to revive the economy. [20 marks} QUESTION 2 Variations in the foreign exchange rate can impact on the profitability of businesses. Explain what determines the foreign currency exchange rates, [20 marks} QUESTION 3 Infiation creates business uncertainties. What fiscal and monetary policy measure are taken to curb inflation? [20 marks] QUESTION 4 Slowdown in the USA economy has adversely affected Malaysia's economy during 2008- 2009. What measures were taken by Malaysia to boost its economy? [20 marks} END OF QUESTIONS MEC604. MANAGERIAL ECONOMICS_0116