ECO404 - Managerial Economics Quizzes & GDB


ECO404 - Managerial Economics Quizzes & GDB

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Comment by sweetipie on November 24, 2015 at 4:47pm
Total Marks 5
Starting Date Friday, November 20, 2015
Closing Date Tuesday, November 24, 2015
Status Open
Question Title Concepts of Profits
Question Description


Engro Company was established in 2003. Engro decided to expand its business more by offering into the food business so it has established Engro Foods Limited in 2005. Engro Foods (EFOODS) is now one of the top FMCG companies in Pakistan. The company is involved in the manufacturing, processing and marketing of dairy products, ice cream, frozen desserts and fruit juices. It has recognized several brands that have already become household names in Pakistan such as Olper's, Tarang, Dairy Omung, Omung Lassi, Olper's Lite and Omore, amongst others. The company is growing rapidly to achieve expected reductions in average costs as production expands.


Being the student of managerial economics you are required to explain precisely ‘Does the success of Engro Foods (EFOODS) reflect an effective application of the marginal profit concept or the incremental profit concept? Explain logically. 


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