Professional Documents
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Important Questions
Managerial Economics
MODULE I
a. Opportunity cost
b. Net present value
c. Discounting principle
d. Equi-marginal principle
e. Marginal or incremental costs
f. Consumers surplus.
g. Producer Surplus
h. Social Surplus
MODULE II
13. Explain the long run returns to scale with the help of a
production function?
17. How do long run costs differ from short run costs? Show
that the long run average cost curve is an envelop of short run average
cost curves.
How are prices and output determined in perfect competition in the short
run?