How would you change a typical tariff structure like in the Texas Electrical Provider market to take into account social considerations (e.g., favoring low‐income consumers)? (Remember that you are analyzing residential rates, which are generally separate from commercial consumers’ tariffs.) Explain your answer.

From the microeconomics theories that you have studied, provide TWO suggestions for the cement industry to achieve a sustainable growth. 8 marks

Credit card is a convenient medium to conduct transactions. However, according to The Star Online (2018), 47% of Malaysian youths have high credit card debts.

Q1. What are the causes of this phenomenon? What can we do to curb this? Write an essay about it.

• Use 6 paragraphs for your essay.

• Your essay should have an introduction, two (2) reasons Malaysian youths have high credit card debts, two (2) solutions to curb this situation and also a conclusion.

• Give your essay an appropriate title. You do not have to attach an essay outline for this essay.

One theory of oligopoly is the cartel theory.

1. State the key behavioral assumption of the cartel theory.

b. Describe the problems associated with forming and maintaining a cartel.

Suppose the Fed increases the nominal money supply. Use the AD/AS model to illustrate and discuss the impact on inflation and real GDP, short run and long run.

Consider an airline trying to sell plane tickets to business travelers and tourists. The airline cannot distinguish between the two at the point of sale, but knows that in general, business travelers have higher willingness to pay for better seats. Let PF and PC be the price of first class and coach tickets respectively. Suppose that business travelers are willing to pay $1000 for a first class seat and $400 for a coach seat, whereas tourists are willing to pay $500 for a first class seat and $300 for a coach seat.

(a) If the airline wants to implement second-degree price discrimination so that business travelers buy first class seats and tourists buy coach seats, what are the incentive compatibility constraints they face?

(b) Using your incentive compatibility constraints, find the price that the airline will charge for a coach seat.

(c) What are the information rents that the airline must leave to business travelers? What is the price of a first class seat?

Assume you are thinking of starting your own business. You need to consider some of the ideas covered in this course, including scarcity, supply and demand, and economic indicators.

1. Give a brief description of the business, including a description of the major product/service you would offer.
2. Explain the factors that would affect the supply and demand for your major product/service.
3. List some economic resources you would need to produce your product/service. What scarcity, or opportunity costs do you need to consider?
4. Describe the economic indicators would you be most interested in knowing more about before starting this business and the current levels of these economic indicators. How will they affect your planning?

Assess your product/service against existing competitors (or providers of near-substitutes). What comparative advantage do you have?

1. You are on the phone with the project sponsor of a project you are managing. He informs you that he accepted the role reluctantly and now, two months into this eight month project, he is considering withdrawing as a project sponsor. He does not see the need for this role and is extremely busy with his other responsibilities. How do you respond?
2. You are surprised when your project team "pushes back" on your request for them to schedule a full-day offsite to work with you to develop a risk management plan. They state that they are simply too busy to afford time for this activity. And besides, they feel that if something unforeseen occurs, it is your responsibility to react to it. How do you respond to your team?

In recent years the Fed’s monetary target has been the federal funds rate. How does the Fed raise or lower that rate, and how is that rate related to other interest rates in the economy such as the prime rate?

In your reasoned opinion, is the current economic and regulatory environment in the United States conducive to small business growth and entrepreneurship? Why or why not?

a.Suppose there are two goods, that the prices are given, and that there is a consumer with a certain income. Show in a diagram it is possible to split the effect of price fall on good 1 into income- and substitution effects. Assume that the good is a normal good.

b.If the good had been an inferior good, what would have been different in the graph?

c.If the good had been a Giffen good, what would have beedifferent?

(a) Why do firms practice transfer pricing?

Explain how transfer pricing is affected when:

(b) There is a competitive external market for the intermediate product. (c) There is a non-competitive external market for the intermediate product.

1. Please discuss the characteristics of the perfect competition market structure.

2. What are the main characteristics of a competitive market?

3. Explain the difference between a firm’s revenue and its profit. Which do firms maximize?

One source of growth is external growth from a merger and/or acquisition. Often merger/acquisition are justified on the basis of the expected benefits from 'synergies' created by the merger/acquisition. Economists know these as economies of scale and economies of scope. The merger with the yet to be concluded merger of Sprint, T-Mobile and Metro PCS, mergers and acquisitions and determine if the synergies come from economies of scope or economies of scale. Make sure you provide a clear explanation of the difference between economies of scope and economies of scale for the merger that is yet to be concluded for the merger of Sprint, T-Mobile and Metro PCS.