NMIMS APRIL 2020 ASSIGNMENT - BUSINESS ECONOMICS

BUSINESS ECONOMICS

1. The concept of elasticity for demand is importance for determining the prices of various factors of production. Discuss the various factors that influences the price elasticity of demand.

2. Complete the hypothetical table below and explain in brief, the behaviour of each type of cost.

Quantity

• Total Fixed Cost
• Total Cost
• Total Cost
• Average Fixed Cost
• Average Cost
• Average Total Cost
• Marginal Cost

1

25

2

40

3

50

4

60

5

100

80

6

110

7

150

8

300

9

500

10

900

3. Demand forecasting in organisations plays a vital role in business organisations. It provides reasonable data for the organization 's capital investment and expansion decision.

a. Keeping the above statement into consideration. Discuss the various steps involved in demand forecasting.

b. Discuss the various needs for demand forecasting in business organisations.