1. Critically discuss different methods of demand forecasting.
2. The total cost function of a firm has been estimated as
TC = 100 + 10Q + 20 Q2
Where Q = quantity produced. Find
(a) Marginal cost when Q = 10
(b) Quantity (Q) at which average cost is minimum
(c) Q at which average cost equals marginal cost
3. Suppose you are a sales manager of an organization manufacturing consumer durables. How will you analyze the demand? Explain how will this demand contribute to the business decision-making?
4. What do you understand by a ‘perfect competition’? What are its features? Distinguish between the ‘pure’ and ‘perfect’ competition giving examples.
5. What in your opinion will be an appropriate price policy if the demand reaches its saturation point and the substitute products are likely to enter the market? Explain with the help of examples.