1.With the aid (wherever possible) of diagrams, compare the outcomes of the traditional profit maximization model with those obtained by the managerialist and behaviouralist theorists.

2.Explain with the aid of diagrams the following "Managerial Discretion Models of the firm".

i.The Baumol Sales Revenue Maximisation Model.

ii.The Managerial-Utility-Maximisation Model.

iii.The Multi-Period Profit Rate of Growth Model.

iv.The Marris Model.

3.Which firm would you expect to have the highest share price?

i.A profit-maximiser

ii.A revenue-maximiser

iii.A managerial utility maximiser.

4.Explain the differences between the neoclassical cost theory and the X-inefficiency theory of the firm.