NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Business Economics
Internal Assignment Applicable for December 2016 Examination
Assignment Marks: 30
Instructions:

All Questions carry equal marks.

All Questions are compulsory

All answers to be explained in not more than 1000 words for question 1 and 2 and for
question 3 in not more than 500 words for each subsection. Use relevant examples,
illustrations as far as possible.

All answers to be written individually. Discussion and group work is not advisable.

Students are free to refer to any books/reference material/website/internet for attempting

their assignments, but are not allowed to copy the matter as it is from the source of
reference.

Students should write the assignment in their own words. Copying of assignments from
other students is not allowed.

1. Long run average cost curve is U shaped. Discuss the factors influencing the
shape of long run average cost curve. Do you agree with the statement that LAC
curve is often found to have a nearly flat bottom and to be L-shaped rather than Ushaped? Substantiate your answer.

(10 Marks)

2. Oligopoly is a competition among few. Explain the features and pricing strategy
among the oligopolistic firms. Also apply the concept of Cartel in case of De Beers
and OPEC.

3. Read the caselet and answer the questions given below.

(10 Marks)

NMIMS Global Access

School for Continuing Education (NGA-SCE)
Course: Business Economics
Internal Assignment Applicable for December 2016 Examination

The annual Report of National Food Survey Committee has estimated the price
elasticity of demand for different food items in the UK.

a.

Commodity

Elasticity

Cheese

1.20

Bread

0.09

Meat

1.37

Potatoes

0.21

Frozen Peas

1.12

From the price elasticity values, which of the above commodities are essential for
the people in UK? Explain in detail why? And from price elasticity values, which
of the above commodities are non-essential for the people in UK? Why? Explain
in detail.

(5 Marks)

b. As a result of a change in the price of product X from Rs. 40 per unit to Rs. 45 per
unit, total supply of product has changed from 1,000 units to 1,200 units. Calculate
elasticity of supply and comment on your answer.

*******************

(5 Marks)