Managerial Economics (2.3.

15)
Time-2Hrs Full marks-40
Each question carries 6/7 marks

Unit 1
1. Define managerial economics? State its scope.
2. What do you mean by managerial economics? Discuss the role played by it in a
business?
3. Define managerial economics? Shoe that the difference between managerial
economics and economics?
4. Define firm? Discus its different objectives?
5. Explain the concept of profit maximization of a business?
6. Profit maximization is not the only objective of a business? Explain the statement?
7. What do you understand by demand? Discuss the different types of demand?
8. Explain the law of demand? What are the exceptions to this law?
9. Define the elasticity of demand? Discuss the importance of elasticity of demand?
10. What is elasticity of demand? How it can be measured?
11. What is demand forecasting/ discuss the factor involved in the process of demand
forecasting?
12. What is demand forecasting? Discuss the purposes of forecasting demand?
13. Explain in brief the various types of survey methods of demand forecasting? How are
survey methods superior to statistical methods?
14. Discuss in brief different statistical methods of forecasting demand and point out their
merits and limitations?
15. Write short notes on:
i. Law of demand
ii. A firm
iii. Marginal cost curve
16. Write short notes on:
i. Derived and autonomous demand
ii. Income elasticity of demand
iii. Delphi method of forecasting demand
17. Write short notes on:
i. Cross elasticity of demand
ii. Giffen goods
iii. Barometric technique
18. Write short notes on:
i. Direct and indirect demand
ii. Trend projection method
iii. Concept of elasticity.
19. Discuss the meaning, nature and scope of managerial economics?
20. Managerial economics is applied economics , Explain
21. Managerial economics in the discipline which deals with the application of economic
theory to business management, Comment?
22. Discuss various constraint of a business firm?
UNIT II

1. What is production function? Explain with the help of an example.

2. What do you understand by “return to scale? Why increasing return to scale occurs.
Explain with the help of diagram.

3. Short notes-
i) constant return to scale.
ii) Decreasing return to scale.

4. What is Cobb-Douglas production function? State its properties.

5. Explain the least-cost combination of factors with a suitable diagram?
6. Distinguish between
i) Fixed cost and variable cost
ii) Economic cost and accounting cost
iii) Explicit cost and implicit cost
iv) Marginal cost and average cost
v) Short run cost and long run cost
7. Explain with a diagram the relation ship between cost and output in short run?
8. Explain the relationship between cost and output in the long run?
9. State and explain different types of cost functions?
10. Write short notes on:
i) Short run cost function
ii) Long run cost function
11. What do you mean by internal economics. Describe different types of internal
economics?
12. State and explain the sargant Florence principle of economics of scale?
13. Write short notes on:
i) Internal diseconomies
ii) Learning curve
iii) External diseconomies

UNIT III

1. What is perfect competition? State its features?

2. Explain the short run equilibrium of a firm under perfect competition
3. Explain the long run equilibrium of a firm under perfect competition
4. What is monopoly? Explain the nature of demand and marginal revenue curves under
monopoly?
5. How price is determined in a perfectly competitive market?
6. How price is determined in monopoly, when a firm can maximize profit?
7. Explain the equilibrium of monopoly firm? How that price fixed by the monopolist is
less than the marginal cost of production?
8. What do you mean by monopolistic competition? State its features?
9. Discuss about the nature of demand and marginal revenue curve under monopolistic
competition?
10. State and explain the price output equilibrium of a firm in the long-run under
monopolistic competition?
11. What is oligopoly? State its characteristics. Can price and output is determined in
oligopoly?
12. What is capital budgeting? Why it is important for a managing?
13. Discuss the nature of capital budgeting problem?

14. Explain various methods of capital budgeting in nut-shell

15. Short notes on:

i) Pay back period
ii) Internal rate of return
iii) Present value method

16. Besides profitability what are the other factor that are taken into accounting before
going for an investment?

17. State various internal sources of capital?

18. Examine various external sources of capital?

19. What is cost of capital? How would you calculate cost of preferable share capital?

20. short note on :

i) Cost of debt
ii) Cost of equity capital
iii) Cost of retained earnings
iv) Average cost of capital