SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)

(Established under section 3 of the UGC Act 1956)

Re-Accredited by NACC with ‘A’ Grade
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Institute Name: (0102) SYMBIOSIS LAW SCHOOL, NOIDA
Programme: (010224) BBALLB
Batch: (2019-24)
Semester: III
Course: Managerial Economics
Course Code: 0102240305

Date: 24/12/2020 Maximum Marks: 45

Day: Thursday Time: 10:00 am – 11:30 am
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Instructions:
1) All questions are compulsory
2) Type the answers in a word file
3) The answer must be original. If it is found that the answer is copied from any source then
necessary action will be taken as per examination rules.
4) Graphical representation is not required in the response.

Q.1. Profit rates usually differ among firms in a given industry and even more widely among firms in
different industries. Firms in such industries as steel, textiles, and railroads generally earn very
low profits both absolutely and in relation to the profits of firms in pharmaceutical, office
equipment and other high- technology industries. How can these differences be explained?
(15Marks)

OR
Q.1. Answer the following questions-
a. Why might a movie theater charge a lower admission price for the first show on weekday
afternoons than they do for a weeknight or weekend show? (3Marks)
b. Consider the market for breads in India, where there are over a thousand stores that sell breads at
any given moment. Suppose the Government issues an advisory saying that consuming breads is
bad for your health. Holding all else constant, explain what this situation will lead to? (4Marks)

c. With respect to each of the following changes, identify the movement or shifts in demand curve?
a) An increase in income (the good under consideration is an inferior good) (2Marks)
b) A rise in the price of a complementary good (2Marks)
c) A fall in the price of a substitute good (2Makrs)
d) A rise in the number of buyers (2Marks)

Q.2. Answer the following questions-

a. Suppose a U.S. company would like to start a manufacturing unit in India. On what parameters
would the company like to decide how to raise investment funds internally (from undistributed
profits) or externally (by borrowing and from selling stocks)? (10Marks)
b. Are low airline fares of midweek an example of third degree price discrimination? Support your
answer. (5Marks)
OR

Q.2. What is the number of possible outcomes in a decision tree depicting the choice between five
different plant sizes and four possible ways that competitors may react under each of three
 different economic conditions (boom, normal and recession)? How is the probability of each
outcome determined? (15Marks)

Q.3. Regulation is the result of pressure group action and results in laws and policies to support
business and to protect consumers, workers and the environment. Examine how regulation shelter
firms from competition and protect consumers against unfair practices, workers against hazardous
working conditions and the environment against pollution and degradation? (15Marks)

OR

Q.3. A large-scale firm Hero Honda places its new product in the Indian Market. Firm encounter
general difficulties in deriving the demand curve for the product launched from the data available
in the market. Discuss the approaches that can be used to solve the stated problem? (15Marks)