M.Com. (Semester (CBCS) Examination Mar/Apr-2018
MANAGERIAL ECONOMICS I
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Draw diagrams if necessary. Right side mark indicated full marks.
Q.1
Choose the correct alternatives:
14
The ratio between lower portion of dd from the point and upper portion of dd from the point is called
Point elasticity
Cross elasticity
Income elasticity
None of these
According to managerial economics consists of the use of economic modes of thoughts to analyse business situations.
James Pappas
McNair and Merium
Moyre
None of these
The demand for a commodity is affected not only by its own price but the price of other goods is called
Price elasticity
Cross elasticity
Income elasticity
None of these
The income elasticity of demand is when change in income is 10% and change in demand is 2%.
1/5
01
02
None of these
The breakeven point is obtained at intersection of
Total revenue and total cost line
Total cost and variable cost line
Variable cost and fixed cost line
Fixed cost and total cost line
A monopolistically competitive firm in long run equilibrium
Will make negative profit
Will make zero profit.
Will make positive profit
Any of the above is possible.
Which commodity isn't the exception of demand laws?
Necessary commodity
Giffen commodity
Normal commodity
None of the above
Which one of the following curve is not U shaped?
AVC
AFC
AC
MC
Match list I (market type) with list II (implications) and select the correct answer using the codes given below the lists:
List I (Market Type)
List II (Implication)
A. Perfect competition
i. Collusions of firms
B. Monopoly
ii. Excess capacity and selling cost
C. Monopolistic Competition
iii. Homogenous product
D. Oligopoly
iv. No close substitute and blocked entry.
Page 2 of 2
SLR-CY-2
Codes:
A
B
C
D

ii
iv
iii
i

iii
i
ii
iv

ii
i
iii
iv

iii
iv
ii
i
10) A group of few producers is called market.
Monopoly
Monopolistic
Oligopoly
None of these
11) What isn't assumption of Cournot Duopoly Model?
Only two producers
Homogenous product
Heterogeneous Product
No production cost
12) Which pair is not correct?
Stakelberg Model One leader and one follower
Edgeworth model Less price Product and Higher price product
Cournot Model Homogenous Product
Paul M. Sweezy Model Utility Maximization
13) What are the basic questions of economy?
What to produce
For whom to produce
Where to produce
All the above
14) Giffen Paradox is exemption of
Price Elasticity
Demand law
Law of diminishing marginal utility
Law of returns to scale
Q.2
Write short answers. (Any
14
State the features of perfect competition.
Explain the types of income elasticity of demand.
A schedule for ballpoint pens of Economics students at Sharukh presented in the following table.
Price
9
8
7
6
5
4
3
2
1
Quantity Demanded
10
15
20
25
30
35
40
45
50
Find the Price elasticity of demand when the price changes from Rs. 4 to Rs. 9.
Find the Price elasticity of demand when the price changes from Rs. 2 to Rs. 3.
Q.3
Write short notes. (Any
14
Market Demand
Significance of Managerial Economics
Kinky Demand Curve
Q.4
Answer any one.
14
Explain the meaning and assumption of Break Even analysis through the Non Linear Total Cost Curve and Total Revenue Curve.
Explain the nature and functions of Managerial Economics.
Q.5
Write any one.
14
What is mean monopolistic competition? Explain short run price determination under Monopolistic Competition.
Define the price elasticity of demand. What are the factors determine it? Explain.