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NRT/KS/19/5679

Master of Business Administration (M.B.A.) Semester–I (C.B.C.S.) Examination

MANAGERIAL ECONOMICS
Compulsory Paper–2
Time : Three Hours] [Maximum Marks : 80
N.B. :— (1) All questions are compulsory.
(2) All questions carry equal marks. (16 marks each)
1. (a) Explain the concept of Utility and the Law of Diminishing Marginal Utility with suitable examples.
OR
(b) (i) Explain elasticity of Demand and its types.
(ii) From the following schedule of Demand find price elasticity when :
(a) Price increases from Rs. 100 to Rs. 110
(b) Price decreases from Rs. 140 to Rs. 125.
Price (in Rs.) 100 110 125 140
Quantity Demanded 50 48 45 42
2. (a) Explain the Law of Returns to Scale with schedules and graphs and suitable examples.
OR
(b) What is meant by Economies of scale ? State various kinds of economies of scale with examples.
3. (a) What are the characteristics of Monopolistic Competition ? Explain the role of product differentiation
and advertising in monopolistic market.
OR
(b) For a perfectly competitive firm, the following short-run function is given :
TC = 2 + 4Q + Q2
If the price of the product prevailing in the market is Rs. 8, at what level of output the firm will
maximise profits ? Use both TR-TC and MC-MR approach.
4. (a) The following consumption function of an economy is given :
40 + 0.8 Y where Y is national income.
If the planned level of investment in a year equals Rs. 75 crores, what will be the equilibrium level
of national income and consumption ?
OR
(b) Discuss inflation and deflation and the types of inflation. What effects does inflation have on the
economy ?
5. (a) Importance of Demand Forecasting.
(b) Explain the Cobb-Douglas production function.
(c) What is price discrimination ? Explain its types.
(d) What is marginal propensity to consume ?

CLS—14756

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