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ECO550 Managerial Economics

1) What are the challenges and opportunities for car manufacturers in the Indian Market? (perform a SWOT analysis) 2) What is a price war? How would you describe the price war in the  passenger car industry in India? (Discuss the kind of market this  company is facing) 3) Why have prices remained sticky for entry-level cars in the Indian market? 4) How are cross elasticity and income elasticity relevant to Maruti's managerial decisions? 5) What role does inflation play in expanding the market base in a sticky-price model? 6)  Where do economies of scale for Maruti come from? 7) How can Maruti sustain its profitability in the future?

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