Define price discrimination and explain why it is important in the high-tech industries.

Question 1
a) Using examples define the following terms (10marks)
2)Second degree price discrimination
3)Digital economy
4)Software enthropy
5)Assignment scope
b)In economics the objective of a firm is to maximize profit, and one of the ways of ensuring that firms optimize is by ensuring that software are well maintained. Explain the factors which would impact negatively on the work of updating or modifying existing software applications (10marks)
c) 1)What is Business Process Outsourcing (2marks)
2)What are some of the measures undertaken by the government to improve the sector(3marks)
3)Explain the key challenges facing the BPO sector in the Kenya. (5 marks)
Question 2
a)Define the term “electronic data processing” and use a fitting example to illustrate the process of data processing in afirm that has adopted the use of electronic data processing device. (10 marks)
b)”Information technology has the potential to continue driving growth for the foreseeable future” Explain some of the trends that have been observed that suggest that ICT will continue to be a driver of growth.



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