Microsoft Word - ECON7870-2021_final exam.docx ECON7870 Managerial Economics and Business Strategy Semester 1, 2020‐21 Final Exam 1 Answer ALL questions. (100 marks) 1. “There are various principles...

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Microsoft Word - ECON7870-2021_final exam.docx ECON7870  Managerial Economics and Business Strategy  Semester 1, 2020‐21    Final Exam    1    Answer ALL questions. (100 marks) 1. “There are various principles in measuring costs: accounting cost, economic cost, and opportunity cost. There is no best principle. Which principle should be used depends on the actual situation.” Comment on this statement. (15 marks) 2. “When a company’s marginal cost equals its marginal revenue, the company reaches zero-profit equilibrium and should close its business.” Comment on this statement. (15 marks) 3. “In the long run, production cost is generally lower than that in the short run.” Comment on this statement. (10 marks) 4. Different government policies have been discussed in class. Discuss how these policies will affect your business when these policies are imposed on you or on other individuals in the society. (60 marks) If you want to get higher marks, you need to find some relevant reference materials and comment. Instructions:  Work individually.  This is an open-book exam. In case you find any book or article that discusses the relevant issues, you are welcome to make reference to them.  But you must list them as references to avoid plagiarism. (Copying will not be punished, but not listing them as references will be punished harshly.)  If you want to get higher marks, you need to find some relevant reference materials and comment.  This is similar to the requirement of your group project, in which you need to find reference materials, such as news, articles, and/or surveys. (For guidance, see the course assignment information posted at the beginning of the semester in BU Moodle.)  Things that you can comment include how the reference materials relate to the question and/or whether there are statements in the reference materials that are right or wrong.  If you do, you need to submit the electronic copies of your reference materials through the link provided in BU Moodle, or provide a link to the reference materials that I can assess.  Answer all questions in one single MS Office PowerPoint.  The font size for the contents must be larger than 22 pts (fonts in my lecture handout are mostly 28 pts).  The content should be points of sentences with clear concepts and logics. (That means it should neither be in points of “essays,” nor be in points of one or two words without explanation.)  The length (answers to all questions included) should not be more than 50 slides, excluding the slides of references. (The length of students’ answers last year was ranging from 16 to 38 slides.) ECON7870  Managerial Economics and Business Strategy  Semester 1, 2020‐21    Final Exam    2     Words must be typed; graphs and/or equations can be hand-sketched and pasted in the PowerPoint, but they need to be very clear.  You must list down clearly the title, author, publisher, source, and the full web link of all references after the answer to each question in your PowerPoint.  Submit your PowerPoint through the link provided in BU Moodle, which is the only legitimate submission channel.  Due time: posted in BU Moodle.