DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2018.
First Semester
MANAGERIAL ECONOMICS
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. Managerial economics is the discipline which deals with
the application of 'economic theory to business
management'. Comment.
2. What are the major areas of business decision making?
How does economic theory contribute to managerial
decisions?
3. How does the analysis of demand contribute to business
decision making?
4. Explain the following cost concepts with examples:
Variable cost
Fixed cost
Explicit cost
Implicit cost.
5. What is meant by economies of scale? Distinguish
between internal and external economies of scale.
Sub. Code
13
DE-3931
2
wk7
6. What is production function? What is its role in the
analysis of a firm's production activities?
7. Explain the concept of CVP analysis.
8. What are the consequences of inflation?
SECTION B — × 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. What is the role of managerial economics in preparing
managers?
10. What is the law of demand? Mention the exceptions.
11. Explain the relationship between a firm's short-run
production function and its short-run cost function.
12. Explain with diagrams price determination under perfect
competition.
13. Discuss the concept and use of profit planning and
forecasting.
14. What are the different methods of measuring national
income? Which of these are followed in India?
15. What are the causes of different kinds of disequilibria in
the balance of payments? Suggest measures to correct an
adverse balance of payments.
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