MS-09

Management Programme

ASSIGNMENT
FIRST SEMESTER
2011

MS-09: MANAGERIAL ECONOMICS

School of Management Studies

INDIRA GANDHI NATIONAL OPEN UNIVERSITY
MAIDAN GARHI, NEW DELHI – 110 068
 ASSIGNMENT

Course Code : MS-9

Course Title : Managerial Economics
Assignment Code : 9/TMA/SEM-I/2011
Coverage : All Blocks

Attempt All the Questions.

1. Given the profit function of a firm in the form of table, calculate total profit,
average profit and marginal profit and differentiate between incrementalism
and marginalism.

Unit of Total Total Total Average Marginal

Output Revenue Cost Profit Profit Profit
1 10 5
2 30 18
3 50 29
4 70 38

2. Define Price Elasticity. Explain the determinants of Price Elasticity.

3. ‘To an economist the fixed costs are overhead costs and to an accountant
these are indirect costs.’ Substantiate this statement with the help of an
example.

4. What effect does change in demand have on price and quantity? Discuss
with reference to pricing analysis of markets by giving illustrations.

5. Write short notes on the following :-

a) Market Experiments
b) Bundling of services
c) Product Differentiation