SVKM'S NMIMS ‘ SCHOOL OF BUSINESS MANAGEMENT ‘Year:2019-2020 Year: I ‘Trimester: 1 Batch: 2019-21 | Time: 14:00 am to 01:00 pm(2 hrs) “No. of Pages:2_ Program: Post Graduate Diploma in Subject: Micro Economics Date: 07" September, 2019 Marks: 40 2) Attempt all questions. Read the quest efore attempting any question. 1} Ceep, precise and wo the point answers writen in good handweng wl be appreciated. ©) Key words / Terms could be underlined. Diagrams and flow charts wherever required should be drawn. Compuisory Questions 1 Based on the concepts of demand and supply, elasticity of demand, forecasting of demand and pricing practices, explain 10 the following. 4. In winter season, the prices of woolen wears are typically higher than in summer. Tn case of mangoes daring ‘mango season ie. summers, the reverse is true, Why? Explain with the help of diagrams, @ marks) bb, Demand function: Q= 310- 6P +3Y. Y and Supply function: Q =3P-S0.1f Y=20, what will be the market clearing price and Quantity and price elasticity of demand and income elasticity of demand? (2 marks) ¢. Asan entrepreneur, you want o launch a new brand of packaged cow milk in Kharghar node of Navi Mumbai having a population of 10 lacs, What tools and techniques of demand forecasting will you use to forecast the demand? Explain critically. @ marks) 4. What pricing practice will you go for fo capture the marketshare of your product and why/? (2 marks) i. Law of diminishing marginal returns to labour can be explained through three stages of production. Explain these tye stages of production with the help of diagrams as well asthe rationale. (3 Marks) ii Why Long run Average Cost curve assumes U shape? (2 Maks) ». Mrs, Smith while producing a product ata price of $ 10, wants to know how many units of labour she should hire @ $40 per day to achieve equilibrium when Total Product of workers es follows: Boas TE FE 1 “Ta Prod an oO i. Calculate Marginal Revenue Product and Marginal Resource Cost from the table and find out the equilibrium and also draw a diagram. (3 Matks) Ji The total cost function of a toy making factory is given as TC= 100+ 60Q - 12Q? + Q ind the following (@) Find equations of TVC, AVC and MC funetions. (I mark) (b) The Price of a toy is RS, 34, find out the breakeven point of sales units in thousands). (1 Mark) 3. Mythila is a small economy having all the three sectors: primary, secondary and tertiary- in the economy representing 10 all the four market structures as defined by degree of competitions. Of various firms that exist in the economy, we are ‘we have identified four firms, each representing onc typical market siructure. Discuss the following, 1). Why does the perfectly competitive firm assume horizontal shape of AR and MR curve whereas other firms a ety coregie talrcrmiy te Eu etais orion Saamee Roe a tarnon = Gr away tah onc aa ce nlp mate ete (wer) Dwi catbeeseal cope tee peeatia es erty ae) oe acer ate tance aia ‘v. Explain the concept of consumer Surplus and deadweight loss (2 marks) Eerste Ape4. a From the following table giving the sales revenue of Firm 'SunTech’ and the yearly expenditure on advertising fom 2009 to 2018. Figures in lakhs) Kearg 00) pow poli Boi) pois ped BAIS Bore Bor pow bene, ho ke bs fs ‘abe bs bs 0 a 5, Calculate and intespret regression coefficients a and b. (3 Marks) i, Estimate regression equation through Least square method. (I Mask) 4h, Forecast sales revenue for year 2019 if advertisement expenditure Would be Rs.9 lakhs. (1 Mark) b) TC~ 120+ 50Q- 109? +Q9 Find the following i. Find equations of TVG, AVC and MC functions. (1 mark) 4 The level of output at which AVC and MC are minimum and prove that AVC and MC are U shaped.(3 marks) jit. AVC and MC forthe leve! of output at which AVC curve is minimam.(1 mark)