APRIL 2012 72202/MBM1A

Time : Three hours Maximum : 75 marks

PART A — (10 × 2 = 20 marks)

Answer any TEN questions.

All questions carry equal marks.

1. What is Managerial Economics?

2. What is an indifference map?

3. What is meant by perfectly inelastic demand?

4. What is demand?

5. What are the properties of Isoquants?

6. Define fixed and variable costs.

7. What is meant by real cost of production?

8. What do you mean by Economics of scale?

9. What is imperfect competition?

10. Write a short note on local markets.

11. Write the law of diminishing marginal utility.

12. State the meaning of monopolistic competition.

PART B — (5 × 5 = 25 marks)

Answer any FIVE questions.

All questions carry equal marks.

13. State the objectives of Modern Firm.

14. Discuss the steps involved in demand forecasting.

15. Explain the types of internal economics of scale.

16. Define total revenue, average revenue and

marginal revenue.

17. What are the main features of monopolistic

competition?

18. What are the distinguishing features of an

oligopolistic market?

19. What are the pricing objectives of a business firm?

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 PART C — (3 × 10 = 30 marks)

Answer any THREE questions.

All questions carry equal marks.

20. Discuss the important concepts of economics.

21. Analyse the determinants of demand for a

product.

22. Briefly explain the types of elasticity of demand.

23. "Whatever price monopolist fixes and whatever

output he decides to produce are determined by
the conditions of demand". Explain.

24. Discuss the general considerations of pricing.

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