MANAGERIAL ECONOMICS
Question 1 (25 Marks)
a) Briefly explain what does managerial economics means? (5 marks)
b) Why managerial economics is so important in business activities? How does managerial
economics can help managers in business practices in term of designing business
strategies?
(10 marks)
c) One of the most important tool in managerial economics is marginal analysis. How
marginal analysis is used for making a managerial decision?
(10 marks)
Question 2 (25 marks)
For each of the following situations, determine whether the manager is concerned with a short-
run or a long-run production decision. Explain briefly in each case:
a) A petroleum drilling supervisor on an offshore drilling platform decides to add an extra
six-hour shift each day to keep the drill rig running 24 hours.
(5 marks)
b) The vice present of offshore petroleum drilling operations in the Kerteh Plant chooses to
deploy three more offshore drilling platforms around South China Sea.
(5 marks)
c) A manufacturing engineer plans the production schedule for the month.
(5 marks)
d) After studying a demographic report on future increases in birthrates, a hospital
administrator decides to add a new pediatric wing to the hospital.
Question 1 (25 Marks)
a) Briefly explain what does managerial economics means? (5 marks)
b) Why managerial economics is so important in business activities? How does managerial
economics can help managers in business practices in term of designing business
strategies?
(10 marks)
c) One of the most important tool in managerial economics is marginal analysis. How
marginal analysis is used for making a managerial decision?
(10 marks)
Question 2 (25 marks)
For each of the following situations, determine whether the manager is concerned with a short-
run or a long-run production decision. Explain briefly in each case:
a) A petroleum drilling supervisor on an offshore drilling platform decides to add an extra
six-hour shift each day to keep the drill rig running 24 hours.
(5 marks)
b) The vice present of offshore petroleum drilling operations in the Kerteh Plant chooses to
deploy three more offshore drilling platforms around South China Sea.
(5 marks)
c) A manufacturing engineer plans the production schedule for the month.
(5 marks)
d) After studying a demographic report on future increases in birthrates, a hospital
administrator decides to add a new pediatric wing to the hospital.
