Beruflich Dokumente
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Assignments
Program: MBA (2 Years) Sem-1
Subject Name
Permanent Enrollment Number (PEN)
Roll Number (SEN)
Student Name
Managerial Economics
INSTRUCTIONS
a) Students are required to submit all three assignment sets
ASSIGNMENT
DETAILS
MARKS
Assignment A
10
Assignment B
10
Assignment C
40 Objective Questions
10
b) Total weightage given to these assignments is 30%. OR 30 Marks c) All assignments are to be completed
as typed in word/pdf.
c) All questions are required to be attempted.
d) All the three assignments are to be completed by due dates (specified from time to time) and need to be
submitted for evaluation by Amity University.
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Assignment B
Assignment C
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Assignment: B
Q.1. Why a firm is price taker and not a price maker under perfect market conditions?
Q.2. Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In
the light of this statement critically appraise the Baumols sales revenue maximization theory as an alternative
objective of the firm.
Q.3. Distinguish between skimming price and penetration price policy. Which of these policies is relevant in pricing a
new product under different competitive conditions in the market?
Case Study
Michael Wolfson, a computer programmer had a decent job with the financial powerhouse Bear, Stearns & Co.
Now, he refurbishes computers at the basement in his house and sells it through e-bay. He plans to join as a school
teacher. Michael lost his job in 2003. He was told that his job is being outsourced to India. Paul Schwartz, a
mainframe programmer, who was earning $ 80,000 a year was told that his services were no longer required. He
suspects that his job has been outsourced to India.
There is growing dissent among the Americans against the increasing practice of outsourcing. It has become an
electoral issue in the coming presidential elections in the US. The Democratic candidate, John Kerry has made it an
emotive issue, despite economists trying to portray the positive aspects of outsourcing.There are numerous reasons
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Jane Linder of Accenture's Institute for Strategic Change says that companies outsourcing the traditional back-office
work have more control and discipline over their operations. Moreover, employees of the company can concentrate
on framing strategies. Further, outsourcing also results in greater efficiency and lowering costs. This allows
companies to offer better services to customers. A study done by McKinsey Global Institute reveals that for every
dollar of work outsourced by the US, it gets back $1.14 as income, and the countries to which the work is being
outsourced gains 35 cents. This shows that outsourcing is a win-win situation for both the countries.
Benefits for US
Savings to US investors or customers
Imports of US goods and services by providers in
India
Transfer of profits by US based providers in India
back to US
0.58
0.05
0.04
0.67
0.450.47
0.1
0.09
Central government
0.03
taxes
State government
taxes
0.1
0.01
0.33
There is a definite cost advantage in off-shoring work to India. These advantages are a result of lower wages in
the developing countries along with the development of telecommunications in these countries. A report
published by HSBC, which has off- shored more than 4,000 jobs to India, says that the telephone costs from India to
America and Britain has decreased by almost 80%, since January 2001. The wage difference between these
countries is also a factor that forces the companies to outsource their business processes to India. A study done by
NASSCOM, says that the average salary of an IT professional in UK is $96,000, in US it is $75,000, whereas in India it
is just $26,000. The wage difference between the low end call center jobs of both the countries is also very wide.
An average call center employee in UK earns $20,000 on the average. Whereas, a call center professional in
India barely manages to earn one tenth of the earnings of their British counterparts.
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Negative
Positive
Zero
Not defined
Negative
Positive
Zero
Not defined
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Demand is elastic
Demand is inelastic
Demand is unitary elastic
None of the above
d.
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Positive
Negative
Zero
None of the above.
Envelope curve
Angel curve
Laffer curve
None of the above
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A rectangular Hyperbola
A horizontal Line
It is U shaped
A vertical Line
All costs are variable costs in the long run except LMC
TFC is inverse SShaped reflecting Laws of Returns.
Over a very long range of Operation, AFC is Zero.
None of the above is correct.
Imputed Cost
Implied Cost
Accounting Cost
Opportunity Cost
Q.19. The use of highly structured meeting agenda and restricted discussion or interpersonal
communication during the decision making process is known as
a.
b.
c.
d.
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Cyclical fluctuations
Seasonal Variations
Random Variation
Irregular Variation
Q.21. In the short run the supply curve of a firm in perfectly competitive market is
a.
b.
c.
d.
Perfect competition
Monopoly
Oligopoly
Not defined
Illegal activities
Legal framework
Authorized framework
Not defined
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Q.25. As more labor is added to a fixed amount of input, the rate at which output goes up begins
to decrease. This is called
a.
b.
c.
d.
Q.26. If the cost of sugar rises and sugar is a major ingredient in jelly beans, then the jelly bean
a.
b.
c.
d.
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If the marginal cost is greater than the average cost the average cost falls
If the marginal cost is greater than the average cost the average cost increases
If the marginal cost is positive total costs are maximised
If the marginal cost is negative total costs increase at a decreasing rate if output increases
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Oligopoly
Competitively monopolistic
Duopoly
Monopolistic competition
Q.39. In case certain goods are not sold within a reasonable time, the retailer pulls the price down, it is
known as
a.
b.
c.
d.
Adjustment pricing
Administered pricing
Mark-down pricing
Mark-up pricing
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Limit Pricing
Administered Pricing
Peak Load Pricing
Skimming Pricing
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