DATE
SKVM’S NMIMS UNIIVERSITY
SCHOOL OF DISTANCE EDUCATION
COURSE: MS - 3
SUBJECT: MANAGERIAL ECONOMICS
June 2008
MARKS: 100
TIME: 3 HOURS
Instructions:
1.
2.
Q.1
a)
What is Managerial Economics? Discuss the importance of Managerial
Economics for a manager of a firm.
10
b)
Discuss objectives of a firm.
10
a)
Discuss the “Law of Demand”. What causes a shift in the
demand curve?
10
What are the determinants of a demand function for a
commodity?
10
What is significance of demand forecasting? Discuss any one
method of demand forecasting.
10
Explain the following in brief (any two)
10
Q.2
b)
Q.3
a)
b)
i)
ii)
iii)
Q.4
Q.5
Attempt any five questions.
Figures to the right indicate full marks.
Price Elasticity of Demand
Income Elasticity of Demand
Cross Elasticity of Demand
Discuss in detail various stages of the Law of Diminishing Marginal
Returns.
20
a)
Complete the following table. Why does the marginal product take a
negative value after applying certain amount of labour?
10
Units of Labour
1
2
3
4
5
6
7
8
Total Product
Average Product
40
Marginal Product
48
138
44
24
210
29
-27
Q.6
b)
Why is the Long-Run average cost curve U-shaped?
10
a)
Discuss the factors that determine the nature of competition in
the market.
10
b)
Q.7
Q.8
What kind of market structure do the following products face?
i)
Mobiles
ii)
Soap
10
Explain in detail the profit maximizing equilibrium of a firm under perfect
competition in the short run as well as in the long run.
20
a)
b)
Q.9
a)
b)
c)
d)
Explain the price and output determination of a firm under
monopoly.
10
What is a kinky demand curve?
10
Write short notes on any two.
20
Production Possibility Curve
Production Function
Economies of Scale
Relevance of Perfect competition and Monopoly
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