ASSIGNMENTS

Subject code – MB0026

(4 credits)
Set 1
Marks 60

SUBJECT NAME- MANAGERIAL ECONOMICS

Note: Each Question carries 10 marks.

1. The demand function of a good is as follows:

Q1=100-6P1-4P2+2P3+0.003Y
WHERE P1 and Q1 are the price and quantity values of good 1
P2 and P3 are the prices of good 2 and good 3 and Y is
the income of the consumer. The initial values are given:
P1 =7
P2 =15
P3 =4
Y=8000
Q1 =30

You are required to:

a) Using the concept of cross elasticity determine the
relationship between good 1 and others
b) Determine the effect on Q1 due to a 10 % increase in the price
of good 2 and good 3.
2. What are the factors that determine the Demand curve? Explain.
3. A firm supplied 3000 pens at the rate of Rs 10. Next month, due
to a rise of in the price to 22 rs per pen the supply of the firm
increases to 5000 pens. Find the elasticity of supply of the pens.
4. Briefly explain the profit-maximization model.
5. What is Cyert and March’s behavior theory? What are the
demerits?
6. What is Boumal’s Static and Dynamic
 Subject code – MB0026
(4 credits)
Set 2
Marks 60

SUBJECT NAME- MANAGERIAL ECONOMICS

Note: Each Question carries 10 marks.

7. What is pricing policy? What are the internal and external

factors of the policy?
8. Mention three crucial objectives of price policies
9. Mention the bases of price discrimination.
10. What do you mean by the fiscal policy? What are the
instruments of fiscal policy? Briefly comment on India’s fiscal
policy.
11. Comment on the consequences of environmental
degradation on the economy of a community.
12. Write short notes on the following:
a) Philips curve
B) Stagflation