[MPRBA-104A/MPCBA-104A/MPRHR-104B]

MBA, MBA (CMU) & MHRM Degree Examination

I TRIMESTER
MANAGERIAL ECONOMICS
(Effective from the admitted batch 2013–14)

Time: 3 Hours Max.Marks: 60

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Instructions: All parts of the unit must be answered in one place only.
Figures in the right hand margin indicate marks allotted.
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SECTION-A
1. Answer any FIVE of the following:
Each answer should not exceed one page. (5x2=10)
a) What is the subject matter of Managerial Economics?
b) Distinguish between Economics and Managerial Economics?
c) ‘Elasticity as a tool for the Finance Minister’. Explain
d) Explain any two determinants of demand
e) State the technological innovations in production
f) Opportunity cost
g) Oligopoly
h) Monopolistic competition
SECTION-B
Answer the following: (5x8=40)
UNIT-I
2. a) “Managerial Economics is the discipline which deals with the
applications of economic theory to business management”. Discuss
OR
b) What is Managerial Economics? Explain the importance of
Managerial Economics
UNIT-II
3. a) Define law of demand. Explain the features and exceptions to
this law

OR
 b) What is demand forecasting? Briefly evaluate the statistical
methods of demand forecasting
UNIT-III
4. a) Explain and illustrate iso-quants and iso-cost curves
OR
b) What is production function? Explain the managerial uses of
production function
UNIT-IV
5. a) Why long-run average cost curve is likely to be L-shaped? Explain
OR
b) Discuss the cost-output relation in the short-run
UNIT-V
6. a) How is price determined under perfect competition? Explain
OR
b) What are the different classifications of market structure? Discuss
their characteristics
SECTION-C
7. Case Study: (Compulsory) 10
The demand for apples in a village was 200 Kgs when the price
was ` 20 per kg. It expanded to 250 Kgs when the price was
reduced to ` 18 per kg. What is the elasticity of demand for
apples in the village?

For each of the following equations, determine whether the

demand is elastic, inelastic or unitary elastic at the given price.

i) Q = 200-4P and P = `10

ii) P=40-0. 1Q and P = ` 10

[51,53,55/I T/214]

[Dec-14]