1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.

25. 26. 27. 28. 29. 30. 31. 32. 33. 34.

Question Bank B.Com. I Sem 2009-10 Sub : Managerial Economics Section A 2 marks questions Define Managerial economics. What is increase in demand? Give the definition of elasticity of demand. What is marginal cost? State the law of supply. Find out consumers surplus, Price actually paid Rs. 2000, Price prepaid to pay Rs. 5000 What is contraction and expansion of demand? Mention two important functions of entrepreneur. Give the meaning of fixed cost and variable cost. What is elasticity of supply? What do you mean by marginal utility? State any two functions of managerial economist. What is opportunity cost? What do you mean by cross elasticity of demand? Find out variable cost . Fixed cost =Rs. 50 ,Total cost =Rs 150 Find out marginal utility, TU from the consumption of 2 oranges=25 units TU from the consumption of 3 oranges =35units Give any two examples of non-durable goods. What is Giffens Paradox? Mention any 4 assumptions of Law of diminishing marginal utility. Define durable goods with examples. Mention any two goals of Managerial Economics. What do you mean by Income elasticity of demand? What is marginal product? What is consumption? What is consumers surplus ? What is macro and macro Economics? Mention the Equi -marginal principle. What are producers goods? Define Normative and Positive science. What is demand forecasting? What is increase and decrease in demand? What is demand schedule? What is decision making? What is production ?

35. Mention the internal economies of scale. 36. Mention the external economies of scale. 37. Mentioned the price and quantity supplied relationship. 38. Explain advertising elasticity of demand . 39. Define variable costs. 40. What is the difference between incremental and marginal costs ? 41. Define MNC. 42. What is production function? 43. What do you mean by Marginal revenue? 44. What is the law of variable proportion? 45. Give the meaning of demand curve. 46. What is a firm? 47. What is supply schedule? 48. State the law of demand. 49. State any 4 exceptions tom the law of supply. 50. Mention any 4 factors which influence demand . 51. What is shift in demand? 52. What are the fundamental principles of Managerial Economics? 53. State the difference between Economics and M.E. 54. Mention the different types of demand? 55. Mention any three objectives of demand forecasting . 56. Mention the formula to calculate price elasticity of demand. 57. State the different types of costs. 58 .Distinguish between change in demand and expansion of demand. 59. What is increase and decrease in supply? 60. What do you mean by joint supply? Section B 5 Marks questions

1. Distinguish between Micro and macro Economics. 2. Why the short run cost curves are U shaped? 3. Explain the determinants of supply. 4. Distinguish between Average revenue and Marginal revenue. 5. State and explain the law of demand. 6. What is price elasticity of demand / Find out it from the following data P1= 8 , P2= 2 , Q1= 100 units, Q2= 200 units 7. What is the relationship between Managerial Economics and Economics? 8. What is the difference between Contraction and Decrease in demand? 9. Explain the objectives of demand forecasting.

10. Distinguish between Fixed costs and variable costs. 11.Discuss various kinds of elasticity of supply. 12. Why does demand curve slope downwards ? 13.Explain the different kinds of elasticity of demand ? 14 .The price of Coffee increases .from Rs 50 per kg to Rs. 70 per kg. and as a result the demand for tea increases from 5 kg to 10 kg . What is the cross elasticity of demand of tea for coffee? 15. Describe the objectives of demand forecasting.

16. From the following data calculate Average and marginal utility.

Units 1 2 3 4 5 10 18 24 28 28

Total Units

6 26 17. Fill up the missing figures in the following table : Units Total Units Marginal utility 1 20 ? 2 ? 15 3 ? 10 4 50 ? 5 ? 00 6 45 -05 18.What are the responsibilities of managerial economist ? 19. A firm conducted a study of the demand of caps . It found that the average daily demand (D) interms of price (P) is given by the equation D= 80_5P a) How many caps per day the firm expect to sell at price Rs. 10 per cap? b) If the firm wants to sell 50 caps per day what should it charge? 20. The Philips India company introduces a new TV product in a city with a demand function Qd = 3000_5p Questions:

a) Find out the demand schedules at prices rs. 150, 250, 325, 400, 500. b)At what prices Qd=0 c) If seller wants to sell 2500 sets what perces should be fixed?

Section C 15 marks questions 1. Discuss the nature, scope and definition of Managerial Economics. 2. Discuss the different principles of Managerial Economics. 3. State and explain the law of demand .What are its exceptions> 4. What is elasticity of supply? Explain the different kinds of elasticity of supply. 5. Critically examine the law of diminishing marginal utility. 6. Explain the concept of consumers surplus and its importance. 7 Discuss the law of equi marginal utility and its criticisms. 8. Explain the law of Variable proportions. 9. Calculate the FC, VC, AC, MC, AFC and AVC by using following data. Output (in units) : 0 1 2 3 4 5 Total cost (in Rs.) : 120 180 200 210 260 330 10.Explain the types of internal and external economies enjoyed by the firm. Section - D Case lets 11. Read the case let carefully and answer the questions given below 1. Read the case let care fully and answer the questions below Tata motors recorded sales volume during last five years as below . It desires to expand its capacity . Its present capacity is Rs. 65 cr. worth sales volume at the existing price. Year : 2000 , 2001 , 2002 , 2003 , 2004 . 40 50 65

Sales : 25 30 volume (In cr .Rs.)

Questions: 1. Calculate the demand for its product next three years. 2. Should company expand its business?

Caselet : 2 Construct a demand schedule for product X , for alternative prices of Rs. 1, 2 ,3 ,4 ,5 Given its demand function Dx= 90_ 2p. Draw the demand curve for the same . What is the Mathematical attribute? Caselet :3 Pentex pen company registered the sale of pens during the last five years as under. Year : 2004, 2005 , 2006 , 2007 , 2008 , Sales in 60 80 70 90 70 Rs. Cr. Questions: a) Calculate the demand for its product for next three years. b) Should company expand its capacity when the present capacity is Rs. 70 cr. worth sales at existing price. Caselet :4 Export sales of NIRYAT for the past five years are as follows: Year 2000 2001 2002 2003 2004 Sales in lakhs 90 110 160 140 190

Project the trend of sales for the next five years. Caselet : A soft drink firm developed a soft variety of the cola drink and wanted to know the consumer response to the product. It tested the product in Chicago market area. It was a resounding success - 90% consumers preferred to its hard variety. The company got encouraged and launched it nationwide .Within a month it realized that the product has been rejected in the market and the soft variety had to be withdrawn. Where did the firm wrong?