KSBM – Managerial Economics 2-Would law of diminishing marginal utility apply to movie watching? Will this affect the growth of multiplexes? Or can it be seen as a case for establishment

Would law of diminishing marginal utility

Managerial Economics 2


Q1. Which factors, according to you, are prompting organizations to adopt a package instead of traditional salary?

Q2. Do you think package compensation is more suitable in modern globalised business? Can you draw some lessons from marginal productivity theory?

Q3. Do you think that the case supports the efficiently wage theory or bargaining theory? Give arguments in support of your logic.

Q4.Can similar type of strategy by adopted for remunerating other factors of production as well or not?

Q5. In your opinion what is the future of civil aviation in India? Will LCC dominate the domestic market?

Q6. Do you think that Jet Airways-Sahara merger will drive others to make similar moves so as to remain in competition?

Q7. Collect more information of Indian and Jetlite and try to draw a payoff matrix for their prospective moves to venture into LCC segment. (Hint: the payoff matrix may be hypothetical but logically explained).

Q8. Try to identify various stages of growth of IT industry on basis of information given in the case and present scenario for the future.

Q9. Study the3 table given. Apply trend projection method on the figures and comment on the trend.

Q10. Compute a 3 years moving average forecasting for the years 1997-98 through 2003-04

Q11. What will be the forecasts for 2003-04 for exponential with a = 0.1?

Q12. What lesson can you draw from the above case regarding consumer behavior?

Q13. Do you think change in consumer perception in middle class has been instrumental in emergence of multiplexes? What can be the other reason?

Q14. Observe Table1. Which of the group, according to you, would have demand for multiplexes?

Q15. Would law of diminishing marginal utility apply to movie watching? Will this affect the growth of multiplexes? Or can it be seen as a case for establishment of multiplexes? Give argument in support of your contention.


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