Masters of Business Administration- MBA Semester 1

MB0045 – Managerial Economics - 4 Credits

(Book ID: B1131)
Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

1. Explain what is price elasticity of demand and outline the determinants of price elasticity of demand
with examples.

2. In the newspapers we read about mergers between companies in the same line of business. What are
the economies of scale that can be availed of with mergers.
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3. Discuss the features of monopolistic competition and the method of price determination in
monopolistic competition.

4. If you were to buy a car, what are the factors that would affect the demand for your purchase.

5. When factors of production are combined to produce a particular level of output, what would be the
effect on total product when all factors are kept fixed and only one factor is varied. For example, when
the amount of land used for producing a particular crop is kept the same, and the other factors of
production like labour, fertilisers, etc is increased.

6. A company wishes to project the production requirements of a particular product in the coming years.
How will the company forecast the demand in the coming years, using the trend projection method.
Masters of Business Administration- MBA Semester 2
MB0042 – Managerial Economics - 4 Credits
(Book ID: B1131)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

1. The supply of a product depends on the price of the product. This determines the supply curve. What
are the factors other than price that cause shifts in the supply curve.

2. Explain with examples the following types of costs:

a) Fixed costs

b) Variable costs

c) Marginal costs

d) average costs

e) short run costs

3. Indian railways is an example of monopoly in India. Discuss the factors that determine price in the
different categories of travel in railways.

4. In the case of consumer durables, we find that when the product is introduced, the prices are high,
but over time the prices reduce. What is the pricing policy followed?

5. In the long run, the long run average cost curve is an envelope of the short run cost curves. Discuss
the concept behind the same.

6. A company wishes to introduce a new flavour of tea in the market. Discuss how the company can
forecast demand for the new flavour of tea.