Assignment:
Question 1
Choose a well-known company that trades in Saudi Arabia and doa Web search to find out how well it has performed in recentyears and how it has been influenced by various aspects of itsbusiness environment. (minimum of 500 words)
Question 2
Suppose that a Ulcer Patient and Flu patient have the following demand for Drug CCC.
|
Price (SAR)
|
Qd-Ulcer Patient
|
Qd- Flu Patient
|
|
350
|
1900
|
500
|
|
400
|
1800
|
200
|
a) As the price of the Drug CCC rises from SAR350 to SAR400, what is the price elasticity of demand for
i. Ulcer patient (Show your workings)
ii. Flu patient (Show your workings)
b. Why might Ulcer patients have different elasticity than Flu patients?
Question 3:
A) Select a company in Saudi Arabia and describes the nature and characteristics of the market structure of such company, and what the company can do to improve itself among its competitors (Maximum of 500 words)
B) Given the demand and the cost curves below:
QD = 1000 - 2P
TC = 5,000 + 50Q
i. Calculate the monopolist's profit-maximizing quantity and price if the above is for a monopolist.
ii. Calculate the monopolist's profit.
iii. Calculate the perfectly competitive firm's quantity and price if the above is for a perfectly competitive firm
iv. Determine the perfectly competitive firm's profit
v. Compare the price, output and profit of both monopolist and perfectly competitive firm, and state your views
Question 4:
Consider the following EVIEWS output for monthly data from 1990 to 2008 on US petrol consumption, prices, income etc.
The variables are defined as
LPETCONS_G = Natural Log Petrol Consumption per head (Gallons)
LRPETPRICE = Natural Log Real Average Monthly Petrol Price Per Gallon
LRINCOME = Natural Log Real Monthly US Income per head
D_SPRING - Dummy= 1 when month = March, April, May , (0 otherwise)
D_SUMMER - Dummy= 1 when month = June, July, August, (0 otherwise)
D_AUTUMN - Dummy= 1 when month = September, October, November, (0 otherwise)
a. Carefully interpret and discuss the Eviews regression output and regression model of the petrol consumption?
b. You should also state your opinion as an analyst of the company producing or selling petrol
Dependent Variable: LPETCONS_G
Method: Least Squares
Sample: 1990M01 2008M03
Included observations: 219
Question 5
Obtain the following information relating to Saudi Arabia, and properly put the source of your information
(a) GDP classification of Saudi Arabia according to Economic activities between 2010 to 2018 (in local currency SAR or USD $)
(b) Annual growth rate of GDP by kind of economic activities/sectoral contribution in Saudi Arabia (i.e % growth rate of each sector in GDP)
(c) Use the information above to decide two sectors/industries you would likely to invest in Saudi Arabia if you are a business man apart from crude oil mining and refining. Explain your reason(s) and support your results with some business environment knowledge, market demand analysis and any other knowledge you have acquired during your MBA program.