Posted: April 27th, 2015

Economic

Question 1 (20 marks)
The question is based on material in the Text. Text material which may be relevant to the question may be drawn primarily from any of Text chapters 12 or 13 (with the chapter highlighted likely to be the most important).

The question addresses the following learning outcome:
be able to make decisions that incorporate the relevant benefits and cost analysis

Answer the following:
Newspaper companies appear to be under threat of becoming irrelevant as the sale of newspapers has plummeted over the last 20 years. If you were chairman of the board of a newspaper company, how would you respond? (Hint: Consider newspapers as one of many alternative sources of accessing news)
Discuss in brief, how consumers choices (and access) to secure news from various sources have increase ( internet, TV etc) over the years due to technological advances

Then explain how increased choices and preferences have put pressure on news paper companies and what options they have

You might get some ideas from figures presented in chapter 12 of the textbook, using the concept of budget constraints and indifference curve
Using recent development in technology and theoretical concepts presented in Chapters 12 and 13 discuss what strategies you would pursue as a Chairman