Hall Ticket No Question Paper Code: CMB003
INSTITUTE OF AERONAUTICAL ENGINEERING
(Autonomous)
MBA I Semester End Examinations Supplementary) December, 2018
Regulation: IARE-R16
MANAGERIAL ECONOMICS
Time: 3 Hours Max Marks: 70
Answer ONE Question from each Unit
All Questions Carry Equal Marks
All parts of the question must be answered in one place only
UNIT I
1. Define managerial economics. Explain the relationship with other subjects.
Explain the basic economic principles used by managerial economics.
2. Differentiate between marginalism and equi-marginalism in economics and explain the concept
of finance and personnel.
The time perspective principle and incremental cost concepts are both special application of
opportunity cost reasoning, Explain.
UNIT II
3. Define elasticity of demand. Explain the significance of elasticity of demand
Briefly explain the various methods of demand forecasting
4. Define elasticity of supply. Explain the types of elasticity of supply.
Time series data can be used for forecasting demand. What are the complexities involved in
using the time series data? How do you resolve them?
UNIT III
5. Define production function. Explain the different types of production function.
Explain Cobb-Douglas production function. Explain the economies of scale in detail.
6. Discuss the concept of production function with one variable input along with illustration.
Explain the economies and diseconomies of large scale production.
UNIT IV
7. Discuss in detail about the relationship of Marginal Cost and Average Cost.
Distinguish between the long run and short run average and total cost curves.
8. Define cost. Explain the various types of cost concepts in detail.
Explain the cost and output relationship in short run and long run and discuss its features in
detail.
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UNIT V
9. Explain the different pricing strategies in practice that you recommend to a firm at the time of
introducing its new products in the market.
Define monopoly. Explain the price and output determination under monopoly competition
market.
10. Distinguish between Perfect Competition and Monopoly. ii) Monopoly and Oligopoly.
Define monopolistic. Explain the price and output determination under monopolistic competition.