QUESTION

a) How would the strategy of a firm faced with repeated games differ from that faced with sequential games?

b) What do you understand by an optimal level of pollution and critically discuss the different ways of internalising external costs.

c) The manager of a clothing and textile company in Mauritius, which produces for both the domestic market and foreign markets, is considering expanding its scale of operation and decides to forecast its sales for the following six months. Outline two techniques of forecasting which you would suggest to the manager and comment on your rationale.

d) Discuss the various types of inefficiencies caused by the public sector.