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Question 1:
(a) Discuss the relationship that exists between financial capital and physical capital.
(b) Analyse how a stock-market crash would drive an economy into a recession.
(c) Examine and evaluate the factors that determine the demand for a firm's capital.
Question 2:
(a) Under what circumstances may the value of the Rupee depreciate?
(b) What implications would a depreciation of the Rupee have on the profitability of an organisation involved in foreign trade?
(c) Evaluate the policies that could be used to arrest a continuing depreciation of the Rupee.
1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100 p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b
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