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APRIL 2015 72202/MBM1A

Time : Three hours Maximum : 75 marks

PART A — (10  2 = 20 marks)

Answer any TEN questions.

1. Define managerial economics.

2. What is profit maximisation?

3. What is marginal utility?

4. What is Elasticity of demand?

5. What is price elasticity of demand?

6. What is production function?

7. What is out lay cost?

8. Define Historical cost.

9. What is cash discounts?

10. What do you mean by quantity discounts?

11. What is perfect competitions?

12. What is duopoly?

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PART B — (5 × 5 = 25 marks)

Answer any FIVE questions.

13. Explain the fundamental concepts that aid

decision-making.

14. Describe the factors influencing elasticity of

demand.

15. Describe the elasticity of demand and revenue

relationship.

16. Explain the assumptions of law of variable

proportion.

17. Explain the Long-run Cost-output relationship.

18. Describe the importance of Product-line pricing.

19. Explain the place and trade discrimination.

PART C — (3  10 = 30 marks)

Answer any THREE questions.

20. Illustrate how a firm under monopolistic

competition determines the price of the product.

21. Discuss the difference between 'Economics' and

'Managerial Economics'.

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22. Explain the approach to Indifference Curve

Analysis.

23. Discuss the determinants of supply.

24. Discuss the features of perfect competitions.

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