May 20th, 2015
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MICROECONOMICS - TEST ONE Forty-four multiple choice questions, each worth 2 points; and two short-answer questions, each worth 6 points. For each question, circle the best answer.

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Question: Using the Four-Stage Model of Change Identify Where Citycell falls into.IntroductionThe key factors that affect the ability of a firm to earn an acceptable rate of return on its owners investment are known as the economics of a business. The most important of these factors are competition, technology, and customers. These factors continuously put pressure on the market share and profit margin of a company which leads to a changing economics. The impact of changing economics on well-established companies can be better understood and appreciated within the framework of a Four-Stage Model of Change. This model is shown in the following figure: STAGE I STAGE II STAGE III STAGE IVCost Plus Cost Management Revenue Management Revenue Plus Changing economicsCompetitionTechnologyCustomersThe four stages of change model provide more than just a framework to judge current business events of an organization. The model also emphasizes the importance of various upcoming economic issues those are identified while moving from one stage to another. As the main objective of this assignment is to identify the stage at which the telecom company Citycell falls into, it is essential to analyze the companys different business events from the very beginning up till now. Then those events or strategies would be positioned within the Four-Stage M

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