MS-09 Managerial Economics Exam Papers
MBA - Master of Business Administration
Note: Attempt any five questions. All questions carry equal marks.
1. Discuss various concepts of costs which are relevant from the standpoint of production, planning and control.
2 a) What do you understand by price discrimination? Explain briefly the conditions which make it possible and profitable.
(b) Explain briefly the managerial uses of estimated cost function.
3. What is cost-benefit analysis? How is it different from financial analysis? Discuss briefly the steps involved in social cost-benefit analysis of a project.
4. a) A firm has the production function X = LK (X = output, L = labour, K = capital); labour and capital prices are Rs. 8 and Rs. 10 per unit; and it desires to produce 32 units of output. What is the least cost combination of labour and capital?
(b) Consider the production function
Q = 86 L0.61 K0.39
5. “Pricing decisions are constrained by product-policy decisions and considerations of corporate planning.” Comment on the above statement by giving real world examples.
6. “Firms may not maximise profit but they do have a profit policy.” Discuss the above by bringing out clearly the various facets of a profit-policy decision by a firm.
7 State whether the following statements are true, false of uncertain and give reasons for your answer:
(a) Profit will be either or minimum when marginal revenue equals marginal cost.
(b) Under perfect competition selling cost are not necessary.
(c) A shift in the demand curve for cigarettes is caused by a change in the price of cigarettes.
(d) The break-even point becomes indeterminate when price of the commodity is equal average variable cost.
