MCE604: Managerial Economics Assignment, AeU, Malaysia Mr. Rahim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as a tuition fee

University Asia e University (AeU)
Subject MCE604: Managerial Economics


Mr. Rahim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as a tuition fee, buy books for RM 1,000, and pay for transport for RM 1,000.

The MBA study program will extend over 15 months. Mr. Rahim is working now with a salary of RM 2,500 per month. Being a full-time student, he will have to forego the income from his present job for the period of study.

Work out: (a) the Financial cost, and (b) the Economic Cost of doing an MBA


A firm has the following revenue and cost functions.

TR = 90 Q – Q²

TC = 2Q²+ 30 Q

Determine the quantity level at which the firm maximizes its total profit.

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Explain the term price elasticity of demand. How is it measured? If the price elasticity is -3 and RM 200 is the marginal cost of product X, what should be the optimal sale price?


Explain price discrimination. What are the conditions to make price discrimination effective? Provide your answers with examples from the Airline Industry.


Briefly explain how firms compete/set prices under the Oligopoly market structure.


What is Inflation? Briefly discuss the various Fiscal and Monetary policies that are generally adopted to curb inflation

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