Overview
Instructions:
- This assignment covers 30 percent of the grade structure.
- Answer 3 QUESTIONS.
- The assignment is an individual assignment, and you should submit it within TWO WEEKS in LMS system.
QUESTION 1
In general, the importance of theory of individual behavior among others is to help managers decoding the dynamics of organisational behaviour by exploring the interplay between individual and group behaviour in the business. The interplay relationship between employee and management, thus may influence the productivity and business performance as a whole. Provide your justification on the roles that the theory of individual behaviour can enhance the business performance. (10 MARKS)
QUESTION 2
If a manager could get an understanding of consumer behavior, the manager will gain a marketable skill that will help him succeed in the business world. For instance, a manager could get many market insight when he understands consumer theory (such as indifference curve, budget constrain, and optimal consumer’s preference or choice). Justify how a manager gets the insight from indifference curve, budget constrain, and optimal choice or preference. (10 MARKS)
QUESTION 3
An oligopoly is a market structure that consists of a small number of firms (i.e., cartel) that have substantial influence over a market. Explain the characteristic of oligopoly and justify efficiency loss in the oligopoly market. (10 MARKS)
QUESTION 4
A monopolistic competition is a type of imperfect competition where many sellers try to capture the market share by differentiating their products. Elaborate the advantages and disadvantages of monopolistic competition. (10 MARKS)
QUESTION 5
Unlike a monopoly, with its high barriers to entry, a monopolistically competitive firm with positive economic profits will attract competition. In monopolistic competition, as long as the firm is earning positive economic profits, new competitors will continue to enter the market, reducing the original firm’s demand and marginal revenue curves. Explain the entry and exit in the market. (10 Market).