BUSINESS ECONOMICS

a)

b) c) d)

e) f)

1. Section A Business economics is a field in economics that deals with issues such as business organization, management. In other words BE means applying economics theories and principles into business transactions for the better result. Marginal cost means it is the addition to the total cost caused by producing one more unit of the out put. ISO quant curve means In Latin, "iso" means equal and "quant" refers to quantity. This translates to "equal quantity". The iso-quant curve helps firms to adjust their inputs to maximize output and profits. Perfect competition is a market in which number of buyers and sellers are very huge, all engaged in buying and selling a homogeneous product without an artificial restriction and posses perfect knowledge about market. GDP(GROSS DOMESTIC PRODUCT) means the total product and services produces in a country, in a particular year. Dumping means the export by a country or company of a product at a price that is lower in the foreign market than the price charged in
the domestic market.

g) Duopoly means 2 sellers controlling over on supply of commodities in the market. h) Law of diminishing stats that as a person increases consumption of a product there is a decline in the marginal utility that person derives from consuming each additional unit of that product. i) Product differentiation means producing unique product from the competitors which is different in color, design, price etc. j) Delphi method of demand forecasting means group of experts collect the information, communicates and each other and draw a conclusion. k) Average cost curve is U shaped BZ of Often, due to economies of scale, gains from specialization, and production efficiencies, producing one extra unit will not cost as much as the revenue gained from selling that one extra unit. l) Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and government decisions.

Section B. 2. Properties Of Indifference Curve Downward Sloping to the right. Non-Intersecting. Convex to the Origin.
Higher Indifference Curve Represents Higher Level.

3. Business goals means the target or the final objectives of the firms to be achieved. Types of business goals a. organizational goals. b. economic goals. c. social goals. d. strategic goals. 4.

5. Factors influencing the elasticity of demand. A. Nature of commodity B. Extent of use. C. Substitutes. D. Durability E. Income spent. F. Income group G. Habits and conventions, H. Time. 6. Law of demand states that when other things remain constant, if the prices increases demand decreases and If the price decreases the demand increases. Determinants of demand. A. Price B. Income C. Number of customers. D. Taste and preferences, E. Price and related goods. F. Consumer expectation. G. Propensity of consumer. H. Advertising effect. 7. price discrimination means charging different prices to different consumers of their products. Types of price discrimination A. personal B. local discrimination C. Discrimination according to use or trade. D. Product discrimination E. Age discrimination F. Sex discrimination G. Size discrimination H. Quality variation discrimination 8. 9. Scope of business economics
A. Demand analysis B. Production analysis C. Equilibrium analysis focusing cost and revenue D. Structure of markets and its imperfection E. Pricing of products and services F. Capital and profit management

10. 11. Business cycle mean s