Appendix A: ASSIGNMENT COVER SHEET
| Date Received:...........................................................
| Master of Business Administration
| Assignment: Managerial Economics
| Edward Ludwig
| 21 May 2012
| P.O. Box 62705
E-MAIL myregent email address
| (Please note that confirmation of assignment receipt as well as return of marked assignment will be forwarded to this email address)
| E-Mail (alternate email address)
| Cell: +264 81 215 9604
| Home : +264 61 246670 / +264 61 219 711
| Work: +264 61 291 3314
Signature absent Sent Via E-mail
Signature of Student ……………………………………………………………. Date 21 May 2012 I hereby confirm that the assignment submitted herein is my own original work REGENT Business School
Table of Contents
Managerial Economics Assignment
1. Question One
1.1. Luthy Amweenje Testing the Table of contents A key challenge that businesses face is scarcity. Explain how the production possibility curve/frontier (PPF) can be used to analyze the fundamental economic challenges (Viz. scarcity, choice and opportunity cost). Choose two products (and with the aid of graphs) that a business may be producing/manufacturing as the basis for your discussion and suggest ways in which the business may redefine their PPF.
2. Question Two.
Recently inflation targeting, a policy that has been used by the South African Reserve Bank, has come under fire from COSATU‟s Zwelinzima Vavi, for a series of reasons. Discuss inflation targeting in detail, noting the case for it, as envisaged by Finance Minister, Trevor Manual in 2000 and the advantages and possible disadvantages and your thoughts in this respect.
3. Question Three.
The effect of cold and frost weather in Brazil on the economy.
10 The year 1977 saw a sustained period of cold and frost in Brazil, the largest producer of coffee in the world, led to a sharp reduction in the supply of coffee. This in turn resulted in an increase in the international spending on coffee. Instead of hurting the coffee industry, this actually spurred on a thriving industry. Using your knowledge of demand and supply and elasticity, explain this paradox.
4. Question Four.
Discuss in detail how new product breakthroughs (like Apple‟s iPad) impact on a company‟s profits in the short run and the impact of competitors responses via their own new products (like Samsung‟s “Galaxy” and Blackberry‟s, Playbook) and their impact on profitability in the long run.
14 You are required to use graphs illustrating economic and normal profits and economic losses in your discussion.
Managerial Economics Assignment
1.1. A key challenge that businesses face is scarcity. Explain how the production possibility curve/frontier (PPF) can be used to analyze the fundamental economic challenges (Viz. scarcity, choice and opportunity cost). Choose two products (and with the aid of graphs) that a business may be producing/manufacturing as the basis for your discussion and suggest ways in which the business may redefine their PPF.
It seems as if it did not work he Production Possibility Frontier is a curve that indicates the usage of limited resources (Land, Capital, Entrepreneur Skills, and Labour) against the unlimited wants & needs required by consumers. The curve displays several combinations of two goods or services that can be attained when scarce resources are fully and efficiently employed. The curve shows that, some resources are better suited for a good or service production than they are for the other Heyne (1994:69). If the quantity of producing/manufacturing a certain good or...
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Marinkov, M and P Burger. Inflation Targeting and Inflation Performance in SA. 2008. 12 March 2012.
Masson, Paul R, Miquel A Savastano and Sunil Sharma. “The Scope for Inflation Targeting in Developing Countries.” October 1997. 12 March 2012 <http://papers.ssrn.com>.
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Parkin, Michael, Melanie Powell and Matthews Kent. Economics. 5th Edition. Essex: Pearson Education Limited, 2005.
Pindyck, Robert S and Daniel L. Rubinfield. Micro Economics. 5th Edition. Singapore: Pearson Education, 2006.
Von Mises, Ludwig. Money and Inflation. 10th Edition. Ed. Bettina Bien Greaves. Alabama: Ludwig Von Mises Institute, 2010.
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