managerial economics

1. 1. Critically evaluate the impact on the UK supermarket sector of the immediate economic uncertain" rel="nofollow">inty created by the decision of the United Kin" rel="nofollow">ingdom to exit the European Union. 900 wordFor this question please briefly state the the uncertain" rel="nofollow">inity caused by brexit but majorly concentrate on the value of pounds after brexit, discuss the shift on the supply curve causin" rel="nofollow">ing prices to in" rel="nofollow">increase and also illustrate this with a supply graph showin" rel="nofollow">ing the in" rel="nofollow">increase Secondly after this brin" rel="nofollow">ing in" rel="nofollow">in the concept of price elasticity of demand, given the nature of supermarket do you thin" rel="nofollow">ink demand will fall because of the price in" rel="nofollow">increase NOTE use supply and demand analysis and graphs to illustrate it. weakenin" rel="nofollow">ing of pounds will cause a shift of supply curve because a lot of foods are imported QUESTION TWO ; “The key players in" rel="nofollow">in the UK supermarket sector do not currently seem to follow the form of behaviour expected from an oligopolistic market structure”: a) To what extent is their behaviour justified given the key drivers for change in" rel="nofollow">in the in" rel="nofollow">industry? 800 words(25%) FOR THIS DISCUSSION you need to spell out what oligopoly is, how they behave and why, discuss uncertain" rel="nofollow">inity ,in" rel="nofollow">interdependence,in" rel="nofollow">incentive to co operate(prisonners dilemma).orice stability, non price competition.then you need to constrast it with current situation ie price war conflict between reality and theory. then explain" rel="nofollow">in why by lin" rel="nofollow">inkin" rel="nofollow">ing it to the key environmental changes that has occurred in" rel="nofollow">in this in" rel="nofollow">industry for the past 8 years 2b b) Critically evaluate the current competitive position of Waitrose. 800 words (25%) FOR THIS QUESTION you need to get datas on waitrose market share/market growth. Explain" rel="nofollow">in what is goin" rel="nofollow">ing on and importantly why QUESTION THREE 3. The annual report and fin" rel="nofollow">inancial statements 2015 of J. Sain" rel="nofollow">insbury plc state: “Our values remain" rel="nofollow">in at the core of our busin" rel="nofollow">iness and are part of our long term strategy for growth and make good busin" rel="nofollow">iness sense”. To what extent are such value statements consistent with the traditional economic theory of the firm? 800 words (25%) FOR THIS QUESTION you need to identify its core values and then proceed to analyse them in" rel="nofollow">in terms of traditional theory of the firm ie profit maximization or the alternative