Concerns the problem of assessing the impact of certain governmental policies on the cost structure and pricing policy of a cable company. As a result of the devalua?tion of the rupee and the policy of import liberaliza?tion, it was expected that industries would be able to utilize their capacities more fully, but that their cost of production would go up. Students will be expected to estimate the net effect of these changes on the cost structure of Modern Cable Company. To solve the problem, they must first estimate the short?term cost function of the plant using the data given on input price changes and capacity utilization in the past.