M.B.A. DEGREE EXAMINATION, MAY 2017
First Year
MANAGERIAL ECONOMICS
Time 3 Hours Maximum Marks 70
SECTION A × 5 15)
Answer three questions
Q1) Demand function
Cost analysis
Scope of economics
Oligopoly
Profit
Public revenue
SECTION B × 15 45)
Answer three questions
Q2) What is demand forecasting? Explain its methods.
Q3) Explain the techniques of managerial economics.
Q4) Discuss about income and cross elasticities of demand.
Q5) Critically examine the law of diminishing marginal utility.
Q6) Discuss about price determination under monopoly.
Q7) Briefly explain about methods of capital budgeting.
SECTION C
(Compulsory)
Q8) Case Analysis
A manufacturer of product X when produces 1,00,000 units under its normal capacity of
the plant is a year has the following costs
Raw material costs Rs. 11.50 per unit
Variable overhead costs Rs. 3.50 per unit
Labour costs Rs. 5.00 per unit
Fixed overhead costs Rs. 10.00 per unit
Variable marketing and selling costs Rs. 1 per unit
In the next three months the firm can sell only 15,000 units at a price of Rs. 30 per unit.
Alternatively, if the plant is shut down, the fixed manufacturing costs can be reduced to
Rs. 60,000. Additional costs of shut down will be Rs. 10,000. Decide what to do? Sell
15,000 units or shut down?