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D
DECO405: MANAGERIAL ECONOMICS
Time Allowed: 3hrs Max. Marks: 80
1. This paper contains 10 questions divided in two parts on 2 pages.
2. Parts A is compulsory.
3. In Part B (Questions 2 to 10), attempt any 6 questions.
4. Attempt all parts of the questions chosen.
5. The marks assigned to each question are shown at the end of each
question in square brackets
6. Answer all questions in serial order.
PART-A
Q1.Anwer the following in 40-50 words:

a) State the law of demand.

b) What is perfect competition?

c) Define opportunity cost.

d) What is demand?

e) Define indifference curve.

f) What do you mean by oligopoly?

g) Write down four features of monopoly.

h) Explain in brief money flow of national income.

i) Define marginal revenue.

j) What is GDP? [10x2=20]

PART-B
Q2. State and explain the law of demand. What are determinants of demand? [10]
Q3. Discuss the various stages of law of variable proportions. [10]
Q4.Petsall Corporation is profit maximizing monopolist. It sells patented rabies vaccines
for pets and earns economic profits. Draw a graph that shows:

1. Output and price

2. Areas of profits [10]

Q5. What is price elasticity of demand? Explain degrees of price elasticity of demand.
[10]
Q6. State and explain the law of diminishing marginal utility. [10]
Q7. Discuss price and output determination under monopolistic competition. [10]
Q8. Discuss income method of national income calculation. [10]
Q9. Explain features of perfect competition in detail. [10]
Q10. Illustrate flows of output, income and expenditure for household, business,
government and foreign sector with the help of diagram. [10]

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