Printed Pages—3 MBA012

(Following Paper ID and Roll No. to be filled in your Answer Book)

PAPER ID : 7102 Roll No.

MBA
(SEM. I) ODD SEMESTER THEORY
EXAMINATION 2013-14
MANAGERIAL ECONOMICS

Time : 3 Hours Total Marks : 100

Note :– (1) The question paper contains three parts.

(2) All questions are compulsory.

PART–I

1. Attempt any four parts of the following. Write short notes on

the following : (5×4=20)

(a) What is the concept of incremental and discounting principle ?

(b) Explain the price elasticity of demand.

(c) Distinguish between average and marginal cost.

(d) What is Brainstorming ?

(e) What are the features of perfect competition ?

(f) Define NNP, GNP, GDP and disposable income.

MBA012/DNG-52117 1 [Turn Over

 PART–II PART–III (12½×4=50)
2. Attempt all parts : (15×2=30) 3. “Managerial economics is the integration of economic theory
(a) Below is the demand schedule for a product. with business practice for the purpose of facilitating decision
making and forward planning by managers”. Explain and discuss
Price (Rs./Unit) Demand (Units/Weeks)
the nature and scope of managerial economics.
100 400
OR
90 500
Compare and contrast Micro Economics with Macro Economics.
80 600 Explain, how managerial economics is related to different
70 700 disciplines.
4. Explain why does demand curve slope downwards while supply
60 800
curve slopes upwards. Mention the exceptions.
50 900
OR
40 1000 What is Elasticity of Demand ? Graphically explain what a
30 1100 “perfectly elastic and perfectly inelastic” demand is.

Calculate the price elasticity of demand and explain the 5. What are the different forms of Market Structure ? Discuss the
various criteria for such a classification.
result when :
OR
(i) The price is reduced from Rs. 90 to Rs. 80 per unit.
How is price determined under a Simple Monopoly ? Explain
(ii) The price is reduced from Rs. 50 to Rs. 40 per unit. price discrimination and a discriminating monopolist.
(b) From the information below calculate the average product, 6. What are the different methods of measuring National Income ?
marginal product and total product of labour in short period. Explain what kinds of decisions are influenced by the change in
Draw a diagram, how do these curves illustrate the national income.
application of the Law of Variable Proportions to the firm ? OR
Land (acres) 5 5 5 5 5 5 5 5 What are the causes of inflation as explained by the Keynesian
Theory ? Compare the demand pull inflation with cost push
Labour (no. of men) 0 1 2 3 4 5 6 7
inflation.
Total product 0 3 8 12 15 17 17 16

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