Question One:

Managerial economics comprises of all tools of economic analysis that are applied in decision making processes given resource constraints.

As a business consultant, the knowledge of Managerial economics is essential in gaining an understanding of the behavior, strategy, and performance of the different units of economic analysis, as well as the general working of the markets.

This understanding can inform the decisions that are taken by governments and other players in the economy of a country.

Required:

a) With examples, explain how your knowledge of Managerial economics can be used in the

process of managing the growth and development of a country such as Uganda.

b) Discuss the role that government can play in the management of an economy in a country

of your choice.

c) Using the knowledge of managerial economics, explain why firms in general aim at a

reasonable profits rather than pursuing other goals:

d) Critically examine the standards of reasonable profits you advise the firms to adopt.

Question Two:

a) With the help, what is meant by the term Break-even point?

b) As a student of Managerial Economics, Explain the important managerial uses of break-even analysis.

c) Discuss the limitations of Break-even Analysis

Question Five:

a) Explain the reasons why managers of different business entities forecast demand.

b) Suppose you have been a pointed as a consultant by Hima Cement ltd, discuss the steps to be followed by the Hima cement during demand forecasting.

c) Describe the different techniques of demand forecasting you would advise the manager of the Tororo cement industry to adopt.