Managerial Economics

Part II Give an adequate explanation on the following questions (20%) 4 marks each 1. Discuss the factors that determine the income elasticity of demand. 2. Explain the conditions for oligopoly market structure to exist. 3. What is increasing returns to scale? and describe at least three causes of increasing returns to scale? 4. What is the relation between productivity and cost? Describe the association using equations for MC 8: MP, and AP & AC 5. Do monopoly rms get a normal prot or supemonnal prot in the short run? Explain how