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1.Managerial economics is the integration of economic theory with business practice for the
purpose of facilitating decision making and forward planning by management Explain.
2. Managerial economics is prescriptive rather than descriptive in character? Examine the
3. The purpose of managerial economics is to show how economics analysis can be used in
formulating business policies.
4.Managerial economics is the study of the allocation of resources available to a firm or other
unit of management among the activities of that unit. Explain.
5. Managerial economics bridges the gap between economic theory and business practice.Discuss.
6. Assess the contribution and limitations of economic analysis to business decision making.
7. Business Economics has a close connection with micro-economic theory, macro economic
theory, the theory of decision making, operations research and statistics Elucidate.
8. How far is profit maximization the basic objectives of a firm? What are the reasons for
limiting profits?
1. Examine the role, price, income, of related goods and advertisement as factors determining
2. If demand is elastic, it will pay a business to charge relatively low prices: if demand is
inelastic, he would be better off with a higher price. Discuss and point out the role of price
elasticity in business decision.
3. Ensumarate the factors involved in demand forecasting. State the purpose of forecasting both
short-term and long term.
4. Illustrate the demand forecasting based on an economic indicator with reference to transistor.
5. Given the data on income elasticity of demand, how would you forecast demand for certain
product. Illustrate your with two examples.
6. Forecast the demand for a new product poses special problems. How is it possible to overcome
7. Define price elasticity of demand and distinguish its various types. How would you measure
it? Discuss the role of price elasticity of demand in managerial decisions.
8. Define total revenue, marginal revenue and average revenue. Why is knowledge of each of
them importance for the firm? What is the value of marginal revenue when total revenue is

1. A firm buys inputs in quantities determined by the production function and the price of the
inputs. Discuss.
2. Explain the concept of production function and discuss the production function of CobbDouglas type.
3. Distinguish between production and cost function. How would you develop the production
4. State the importance of cost control in profit planning and discuss the various areas of cost
5. Discuss the importance of cost in relation to profit planning with specific reference to the
major areas of cost control and tools of such control.
6.All direct costs are variable and all indirect costs are fixed. Do you agree?
7. Discuss the various cost concepts relevant for decision making at the firm level. Do you feel
that break even analysis could be a useful tool to Indian managers?
8. Discuss the various economics of scale. How do they differ from economics of scale?
1. Could long range profits ever in a market of monopolistic competition? Why or Why not?
2. Price is higher and the scale of output is smaller under monopolistic competition than under
perfect competition. Explain with the help of necessary diagrams.
3. Define Oligopoly. Explain how price and output decision are taken under conditions of
4. Accounts for the relative importance of price competition and non-price competition in
oligopoly industries.
5. Discuss the alternative policies available to a firm towards making cyclical price adjustment.
6.Exports prices are set on the basis of what the traffic can bear and are unrelated integrally to
domestic prices or even to costs of manufacture.
7. Is Perfect competition a possible market situation in any of the economics of the world? Give
reason in support of your viewpoint.
8. Explain the equilibrium of a firm in the factor market under conditions of perfect competition.

1. Explain the concept of national income and discuss its relevance to business.
2. Discuss the different methods of measuring national income? Which methods have been
followed in India?
3. How far is National income the basic objective of every nation? Discuss the various reasons
for limiting income.
4. Briefly discuss the objective and main provisions of the Monopolies and Restrictive Trade
Practices Act. What Changes have been made over time in this act, and why?
5. Evaluate the role of fiscal and monetary policies in the growth and direction of Indian
6. Describe the various phases of business cycle. Discuss the steps a businessman may take to
safeguard himself against the effects of trade cycle.
7. Discuss the Business cycle how much important in national income.
8. What are the social responsibilities of a public sector? Do you think the public sector in India
has fulfilled its social responsibilities? Support your arguments with examples.