MANAGERIAL ECONOMICS

2 MARKS QUESTIONS:

1. Define incremental principle.

2. What is managerial economics?
3. What is meant by “opportunity cost”
4. Define Marginalism.
5. What do you mean by consumer equilibrium?
6. Differentiate between cardinal utility and ordinal utility.
7. Define firm and industry.
8. Define econometrics.
9. What is profit?
10. Define production function.
11. Distinguish between risk and uncertainty.
12. What is consumer’s surplus?
13. What are isoquants?
14. Distinguish between returns to scale and returns on investment.
15. Define derived demand.
16. Define elasticity of demand?
17. What is cross elasticity of demand?
18. What are Giffen goods?
19. Define Veblen’s effect.
20. Distinguish between production and productivity.
21. What is cost?
22. Define production function.
23. What is isoquant?
24. What is equal product curve?
25. What is producer’s equilibrium?
26. What is point elasticity?
27. What do you mean by overhead cost?
28. Define selling cost.
29. What is expansion path?
30. Distinguish between fixed cost and variable cost.
31. What is the difference between ‘L’ shaped and ‘U’ shaped cost curves.
32. Distinguish between ‘economies of scale and’ ‘economies of scope’.
33. Define Break Even Point.
34. Define marginal cost.
35. What is learning curve?
36. Distinguish between Oligopoly and Monopoly.
37. What do you mean by equilibrium of firm?
38. Define pricing policy.
39. Define price leadership.
40. What is meant by cartel?
41. What is price discrimination?
42. What do you mean by profit maximization?
43. Distinguish between economic profit and accounting profit.
44. What do you mean by product differentiation?
45. Define duopoly.
46. What is meant by utility?
47. Define cost-plus pricing.
48. Define national income
49. Distinguish between firm’s equilibrium and industry’s equilibrium.
50. What are the degrees of price discrimination?
51. Distinguish between implicit and explicit cost?

8 MARKS

1. Explain choice and allocation problems in economics.

2. Briefly explain the concept of time value of money with an example.
3. Define indifference curve and explain its properties.
4. Explain the nature scope of managerial economics.
5. Explain the concept of consumer’s surplus.
6. Explain the properties of indifference curve.
7. Explain price effect income effect and substitution effect.
8. Discuss the various quantitative techniques used in managerial economics.
9. Explain the different techniques of survey method.
10. What are the factors on which elasticity of demand depend?
11. Explain various degrees of price elasticity.
12. Define cross elasticity. How does such elasticity differ in case of substitutes and
complementary goods?
13. What is the relationship between marginal revenue and elasticity?
14. Explain laws of returns with the help of isoquants.
15. Explain production possibility frontier.
16. Explain the types of models of production functions in empirical studies.
17. Describe the law of variable proportions.
18. Explain the concept of average product and marginal product with the help of
diagram.
19. Explain cost-output relationship in long-run.
20. With the help of production function derive cost functions.
21. Diagrammatically explain the relationship between average cost and marginal-
cost.
22. What do you mean by dumping?
23. Illustrate Cobb –Douglas production function.
24. Why short run curve u shaped?
25. Discuss various types of internal economies available to firm.
26. Explain conditions of equilibrium under perfect competition.
27. Explain different methods of measurement of NI
28. Explain Kinky demand curve.
29. “An monopolist can either fix a price or output” explain.
30. Differentiate between normal profit and super-normal profit.
31. When price discrimination is possible and profitable.
32. Explain cost-plus pricing
33. Distinguish between perfect competition and monopolistic competition.
34. Differentiate between monopoly price and competitive price
35. What are the objectives of pricing follow?
36. Explain the impact of selling cost on demand curve.
37. Explain different methods of measuring price elasticity..

15 MARKS QUESTION:

1. State law of equiv.-marginal utility.

2. State the purpose of demand forecasting in short-run and long-run.
3. Explain returns to scale.
4. State the various economies and diseconomies of scale.
5. Explain short run equilibrium of the firm under perfect competition.
6. Explain the price and output determination under collusive oligopoly.
7. Explain law of variable proportions.
8. Discuss the equilibrium of firm under price discrimination.
9. Explain cost plus pricing and administrative pricing.
10. Explain Kinky demand curve.
11. Is there wastage in monopolistic competition? Elucidate.
12. Write a note on price leadership.