MS-09 Solved Assignment

Old Samples – Ignou MS-09 Solved Assignment

Q. With reference to the marketing approach of demand measurement explain any two important sources of data used in demand forecasting.

Answer. Demand forecasting is predicting future demand for a product. The information regarding future demand is essential for planning and scheduling production, purchase of raw material, acquisition of finance and advertising……

Other forecasts of technology were dealing with vehicle-highway systems, industrial robots, intelligent internet, broadband connections, and technology in education…..

People often use analogies to make forecasts, but they do not do so in a structured manner. For example, they might search for an analogy that suits their prior beliefs or they might stop searching when they identify one analogy……

The administrator then derives forecasts from the information the experts provided on their most similar analogies. Structured analogies are more accurate than unaided judgment in forecasting decisions ……

Q. What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic?

Answer. When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you cannot spend the money on something else…..

Perhaps the building could have been rented out to another company, with the business itself relocated to a location with a higher level of customer traffic. The foregone money from these alternative uses of the property is an opportunity cost of using the office space, and thus should be considered in calculations of the small business's expenses……

Typically constant opportunity costs are found when there is a strong similarity between the two goods……

Q. Explain the objectives of a firm. How is profit maximization the most important Objective of a firm? Discuss.

Answer. Firms are organisations often involving thousands of people directly, with millions of people indirectly involved. Not all people directly or indirectly involved in an enterprise have the same goals or gain the same rewards….

Increasingly, firms are introducing ethical goals such as those associated with the environment and carbon emissions and with fair trade……

Maximization of profits as a financial objective requires the profit to be defined and measured accurately, and that all the factors contributing to it are known and can be taken into account…….

Instead these sort of profit targets/objectives should can serve a useful purpose in helping a company to achieve short-term or operational objectives within its overall strategic plan…….

Q. What are the marketing approaches to demand measurement? Explain how Delphi Technique is different from Market Experiments Technique. Get Ignou Mba MS-09 Solved Assignment.

Answer. Defining the demand for your product within the wider consumer market is an important step in market analysis. It will help you to develop effective strategies to promote and sell your product to as many potential customers as possible……

In addition, the various surveys ask about the consumer’s present and future personal finances, and his or her expectations about the economy. The various bits of information are combined into a consumer sentiment measure(Survey Research Center of the University of Michigan) or a consumer confidence measure (Sindlinger and Company)…..

The advantage of Delphi technique is that it helps individual panel members in assessing their forecasts. However Delphi method is quite expensive. Often, the most knowledgeable experts in the industry will command more fees……

Removing this source of bias enables conflicting ideas to survive long enough to be examined, thus allowing a range of scenarios to emerge from the process and an outcome that is more legitimate, particularly when long-term demand forecasts are being made…….

As compared with the survey method, the controlled experiments method is better since the consumer has to make the actual decisions while in the survey method he is simply stating his intentions about the purchase of the good. However, the problem here is that there may be a bias involved in the selection of the sample of the consumers. Generally, the controlled experiments technique is used as a supplement to the other techniques…..

Experimental methods are based on short-term and controlled conditions that are difficult to be found in an uncontrolled market…….

Q. “Price discrimination refers to the situation where a monopoly firm charges different prices for exactly the same product. Explain giving an example.

Answer. Price discrimination is selling a product at different prices for different classes of buyers based on their differing elasticity of demand for the product or service; whether the product or service actually differs among the price groups is secondary, but in most cases, the different prices charged are not related to the differences in the cost of providing the underlying item………

When the monopolist can readily identify discrete market segments with different demand elasticities, the monopolist charges the profit-maximizing price for each of the segments. This strategy is sometimes called third-degree price discrimination……

A competitive firm will produce until marginal cost equals the market price — producing more or less than this will lower profits. Under perfect price discrimination, the marginal revenue curve coincides with the market demand curve, so the monopolist will also produce until marginal cost equals the price of the product……

Download Full MS-09 Ignou Solved Assignment Managerial Economics for Jan-June or July-Dec.This is an example of three-block second degree price discrimination. You cannot buy the second 100 kilowatt-hours at the lower price until you have already purchased the first 100 at the higher price……