wk12

APRIL 2016 72202/MBM1A

Time : Three hours Maximum : 75 marks

PART A — (10  2 = 20 marks)

Answer any TEN questions.

1. What is meant by Managerial Economics?

2. What is profit maximisation?

3. What is the principle of consumer equilibrium?

4. What is demand?

5. What is marginal revenue?

6. What is marginal rate of substitution?

7. What is law of variable proportion?

8. What is incremental cost?

9. What is marginal cost pricing?

10. Define ‘‘Differential pricing’’.

11. What is a market?

12. What is Duopoly?

 wk12

PART B — (5  5 = 25 marks)
Answer any FIVE questions.

13. Explain the scope of Managerial Economics.

14. Explain the difference between ‘Change in

Demand’ and ‘Amount Demanded’.

15. Explain the objectives and purposes of forecasting.

16. Describe the importance of Laws of Returns to

Scale.

17. Explain the three phases of returns to scale.

18. Explain the method of pricing to ‘‘Public utilities’’.

19. Describe the characteristics of Oligopoly.

PART C — (3  10 = 30 marks)
Answer any THREE questions.

20. Discuss the role of Managerial Economist.

21. Explain the assumptions of the Law of

Diminishing Marginal Utility.

22. Discuss the determinants of supply.

23. Discuss the features of Perfect Competition.

24. Discuss the market classification on the basis of

nature of transactions.

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2 72202/MBM1A