Managerial Economics Please answer the questions in detail and use havard method of referencing.Lastly add the bibliography .

Please show the steps for calculations

Question One 145 marks) 1.] Explore the possibility of price discrimination at Eskom, as an economic strategy. Eskom is a company that generates, transports and distributes South Africa's electricity. How can price discrimination impact its prots? (10 marks) 1.2 Describe the effects of each of the following managerial decisions or economic inuences on the value of Eskom company: (10 marks) a) The company is required ID install new equipment to increase power generation and distribution b) The production department purchases new equipment that lowers production and maintenance costs. c) The company raises power tariffs. Quantity demanded in the short run is unaffected, but in the longer run, consumption is expected to decline. 1.3 The power utility generated R500 000 in accounting prots last year. This year. having invested R2 000 000. R20 000 were received in prots. Calculate the return on investment for Eskon't. What steps should Eskom take in light of the calculated return on investment? (10 marks) 1.4 The manager of Eskom is evaluating the purchase of a new equipment for solar power. Two options are available. The first equipment costs R1 000 000 and will increase operating prots to R300 000 a year. The second equipment costs R1 500 000 and will increase operating prots to R450 000 a year. Both equipments have a life of 10 years after which there is no salvage value. For tax purposes, the company can depreciate the machines linearly. The cost of capital for Eskom is 12% and the marginal tax rate 30%. Using the Net Present Value criterion, which equipment (if any) should Eskorn invest on? Explain (15 marks) mutton Two {20 marks). 2.1 Write short notes with examples on the following (10 marks) a) Risk aversion b) Capital Rationing 2.2 Telkorn is expected to grow at an annual rate of 3% for the foreseeable future. The current prots of Telekom are R1000 000 and have not been paid as dividends. What is the value of Telkom assuming the market interest is at 6%? (10 marks) Question Three [20 marks! 3.1 Discuss the meaning of pricing policy in economics? Identify a company of your choice and explain its pricing policy. What are the internal and external factors that affect its pricing policy? (10 marks) 3.2 Identify and explain the instruments of scal policy? Briey comment on South Africa's scal policy. (10 marks)