Managerial economic

Question 1
Critically highlights the various outsourcing activities that your firm/department engage in, the transaction cost associated with it, and how the internal operations and outsourcing of such activities could be efficiently blended if needed.

Question 2
After the lockdown is being eased, the government decides to increase the VAT from 5% to 15%, what managerial actions or decisions would you be taken in your company as regards your product in the market?

Question 3
Suppose you own a small firm that produces and sells Alabad soft drink in Khobar.
a) What economic impact do you think COVID-19 would have on the products/company, and what measures would you likely take as a manager/owner of the company. (Draw any graph if you think it is necessary).

b) What would happen to total revenue when you realize that the product is
i) Elastic ii) Inelastic

Sample Solution