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org

Code No: R21022

R10

SET - 1

II B.Tech I Semester, Regular Examinations, Nov - 2011

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to EEE, ME, ECE, EIE, CSE, IT, ECC, BME)
Time: 3 hours

Max. Marks: 75
Answer any FIVE Questions
All Questions carry equal marks

1.

Define Managerial economics. How is it related to other disciplines?

2.

Distinguish between a shift in demand and a movement along a demand curve.

3.

What is a production function? What is its role in the analysis of a firms production activities?

4.

How the demand curve facing a firm in a perfectly competitive market is said to be infinitely?

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5.

Discuss the Marris managerial theory of firm.

6.

What are the phases of business cycle? Explain them in detail.

7.

Define sole trader. What are the features, merits and demerits of sole trader?

8.

Examine the relationship between solvency, liquidity and profitability

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R10

Code No: R21022

SET - 2

II B.Tech I Semester, Regular Examinations, Nov - 2011

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to EEE, ME, ECE, EIE, CSE, IT, ECC, BME)
Time: 3 hours

Max. Marks: 75
Answer any FIVE Questions
All Questions carry equal marks

1.

What is managerial economics? Explain the nature and scope of managerial economics

2.

The following data is available on the demand for groundnut oil in India:
Quantity Demanded

Year

Price(Rs)

2001

105

100

2005

120

300

2010

140

700

(in 000 tons)

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The above data proves the law of demand wrong. Do you agree? Discuss.

3.

Define isoquants. Do isoquants relate to the short run or the long run? How are isoquants
different from indifference curves?

4.

What makes the equilibrium output under monopolistic competition less efficient than the
equilibrium output under perfect competition?

5.

Explain the significance of Williamsons managerial theory of firm?

6.

What are the phases of business cycle? Explain them in detail

7.

Discuss the role of sole proprietor ship in forms of organization

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R10

Code No: R21022

8.

SET - 2

The financial information about ABC Company is given below.

Items/Year

2009

2010

sales

6,00,000

4,30,000

Cost of goods sold

5,70,000

3,25,000

72,000

30,000

1,14,000

55,000

Cash

15,000

8,000

Other current assets

40,000

27,000

1,60,000

1,10,000

Debtors
Inventories

Current liabilities

Compute the current ratio, quick ratio, debt collection period and inventory turnover ratios for
the above two years and comment on the results.

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R10

Code No: R21022

SET - 3

II B.Tech I Semester, Regular Examinations, Nov - 2011

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to EEE, ME, ECE, EIE, CSE, IT, ECC, BME)
Time: 3 hours

Max. Marks: 75
Answer any FIVE Questions
All Questions carry equal marks

1.

Define Managerial economics. How is it related to other disciplines?

2.

Distinguish between the following:

i) Incremental cost and marginal cost
ii) Fixed cost and sunk cost
iii) Opportunity costs and explicit costs
iv) Economies of scale and returns to scale

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3.

What are the features of a monopoly and a competitive market coexisting in monopolistic

competition?

4.

Define production function? What is its role in the analysis of a firms production activities?

5.

What is contribution and what is its role in cost volume-profit analysis?

6.

Explain the features of Sole proprietorship? What are its advantages and disadvantages

7.

Discuss the Marris managerial theory of firm

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8.

SET - 3

R10

Code No: R21022

The following are the financial statements of XYZ Co. as on 31st March 2009 and 31st March
2010 respectively
Items/Year

31 March 2009

31 March 2010

Stock

10,000

25,000

Debtors

20,000

20,000

Bills receivables

10,000

5,000

Cash in hand

18,000

15,000

Bills payable

15,000

20,000

Bank overdraft

--

2,000

9% debentures

5,00,000

5,00,000

Sales for the year

3,50,000

3,00,000

70,000

50,000

Gross profit

Compute the following ratios for the above data:

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i) Current ratio
ii) Acid ratio

iii) Stock turnover ratio, Also interpret the results

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SET - 4

R10

Code No: R21022

II B.Tech I Semester, Regular Examinations, Nov - 2011

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to EEE, ME, ECE, EIE, CSE, IT, ECC, BME)
Time: 3 hours

Max. Marks: 75
Answer any FIVE Questions
All Questions carry equal marks

1.

Discuss the role of managerial economics in decision making

2.

What is contribution? Explain its significance in cost volume-profit analysis?

3.

Define production function? What is its role in the analysis of a firms production activities?

4.

In a monopolistic competition, why is the firms demand curve more elastic in the long run than
in the short run?

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5.

What are isoquants? Do isoquants relate to the short run or the long run? How are isoquants
different from indifference curves?

6.

Define trade cycle? Explain the phases of trade cycle

7.

What is the significance of Williamsons managerial theory of firm in decision making?

8.

a) What are different tests of profitability for an investment?

b) The following is an extract of balance sheet of a company during the year 2010.
Compute current ratio and quick ratio. Also interpret the ratios.
Items/Year

31 March 2010

Stock

10,000

Debtors

20,000

Bills receivables

10,000

Cash in hand

18,000

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