SRI SAI RAM INSTITUTE OF TECHNOLOGY

Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai.

Sai Leo Nagar, West Tambaram, Chennai 44. Tel: 044 22512333 / 22512111.
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B.E. / B. Tech. Degree Examination

MODEL EXAMINATION
Subject
: Engineering Economics and Financial Accounting
Subject Code: MG2452
Branch /Year /Sem: CS final/ IT 3rd year

PART -A

Duration: 3 Hrs
Date
:
Max. Marks: 100

(10*2=20)

Answer all the questions

1. What is the scope of managerial economics?
2. Name the concepts involved in Decision making?
3. What are the limitations of Elasticity of Demand?
4. Define Law of Supply
5. What is the significance of Isoquants?
6. Write the difference between explicit and implicit costs.
7. What is penetration pricing?
8. Define cross subsidization.
9. What is Bank Overdraft?
10. Write down the advantages and disadvantages of IRR method..
PART B

(5*16=80)

11. a) Explain the relationship of managerial economics with other disciplines.

(OR)
b) i) what are the uses of managerial economics? (8)
ii) Write short notes on firms. (8)

12. a) List the methods used for forecasting demand. Describe about it (16)
(OR)
b) Mention the factors affecting supply. Explain about it. (16)
13. a) Explain about the laws of returns to scale with an suitable illustrate.
(OR)
b) What are the determinants of cost function? Explain the managerial uses of cost
function
14. a) Explain the motives behind the price discrimination. When is price
discrimination possible and socially desirable? (16)
(OR)
b) Enumerate the factors with affect pricing decisions. What information is useful
for pricing decisions in a firm?
15. a)(i) Explain the limitations of financial statements (8)
(ii) Illustrate a Trading and Profit & Loss Account with assumed data (8)
(OR)
b) Explain the following evaluation methods with illustrations:
i) Average Rate or Return
ii) Pay Back Period
iii) Net Present Value. (16)