WK 10

APRIL 2013 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 optimisation?

2. Define sales maximisation.

3. Define utility.

4. What are demand schedules?

5. What is income elasticity of demand?

6. What is optimisation?

7. What is law of variable proportion?

8. Define sunk costs.

9. What is full-cost pricing?

10. What is cash discounts?

11. Define imperfect competition.

12. Define oligopoly competitions.

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PART B — (5 × 5 = 25 marks)
Answer any FIVE questions.
All questions carry equal marks.

13. State the relationship between managerial

economics and accounting.

14. Explain the difference between ‘change in demand’

and ‘Amount demanded’.

15. Explain the different types of demand forecasting.

16. Describe the importance of laws of returns to

scale.

17. Explain the short-run cost output relationship.

18. Describe the skimming price strategy and state

when this will be successful.

19. Describe the characteristics of oligopoly.

PART C — (3 × 10 = 30 marks)

Answer any THREE questions.

All questions carry equal marks.

20. Describe the market classification on the basis of

Area.

21. An efficient business manager should have a

through knowledge of business environment-
Explain.
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22. Explain the assumptions of the law of diminishing

marginal utility.

23. Explain economics of scale and different types of

economies with illustration.

24. Discuss the features of perfect competitions.

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