1. Describe the pricing decision of a company? Was it optimal? If not, why not? How would you adjust price?
2. As economic consultant to the dominant firm in a particular market, you have discovered that, at the current price and output, demand for your clients product is price inelastic. What advice regarding pricing would you give?
3. Describe an activity, process or product of a company that exhibits economies or diseconomies of scale. Describe the source of the scale economy. How could the organization exploit the scale economy or diseconomy?
4. Describe the difference between n economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium?
5. Explain how a change in exchange rate affects a firm? Discuss what happens to price and quantity. How can a company achieve profit from future shifts in the exchange rate? How can we predict future changes in the exchange rate? Please discuss with an example.