M.Com. (Semester (CBCS) Examination Oct/Nov-2017
MANAGERIAL ECONOMICS I
Day Date: Saturday, 18-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Draw diagrams if necessary.
Right side mark indicated full marks.
Q.1 Choose the correct alternatives: 14
At breakeven point there
Profit Loss
No profit or loss None of these
In any organization, profits depends mainly upon
Production cost Production output
Revenue All of the above
An industry is selling a product of Rs. 10 per unit. The fixed cost for assets is
Rs. 40000 with variable cost of Rs. 6 per unit. How many units should be
produced to break even?
8,000 10,000
12,000 14,000
Which of the following are characteristics of B.E.P.?
There is no loss and profit to the firm
Total revenue is equal to total cost
Contribution is equal to fixed cost
All of the above
Which of the following are limitations of break even analysis?
Static concept
Capital employed is taken into account
Limitation of non-linear behavior of costs
Limitations of presence of perfect competition
Given selling price is Rs. 10 per unit, variable cost is Rs.6 per unit and fixed
cost is Rs. 5,000. What is breakeven point?
500 units 1,000 units
1,250 units None of these
For which of the following market structures is it assumed that there are
barriers to entry?
Perfect competition Monopolistic competition
Oligopoly B and C
A monopolistically competitive firm in short-run equilibrium:
Will make negative profit (lose money)
Will make zero profit (break even)
Will make positive profit
Any of the above is possible
Page 2 of 2
SLR-CK-2
"Image building" objectives are common in type of market
structure?
Competition Oligopoly
Monopoly Monopsony
10) When the market is run by a small number of firms that together control the
majority of market share s known as
Oligopoly Duopoly
Perfect competition None of these
11) The price elasticity of demand is:
The ratio of the change in quantity demanded to change in price.
The responsiveness of revenue to a change in quantity
The ratio of the change in quantity demanded divided by the change in
price.
The response of revenue to a change in price.
12) Who is the father of economics?
Adam Smith David Ricardo
Alfred Marshall John M. Keynes
13) Which commodity isn't the exception of demand laws?
Necessary commodity Giffen commodity
Normal commodity None of the above
14) If demand is price elastic, then:
Rise in price will raise total revenue.
A fall in price will total revenue.
A fall in price will increase in the quantity demanded.
A rise in price won't have any effect on total revenue.
Q.2 Write answer in brief: 14
The demand function of Sugar for Radha is given as follows:
Qs 6570 5Ps 1.5Pg 0.15Y
Where, Y Income of the Radha 11500, Ps Price of Sugar Rs. 45 per
Kilogram and pg Price of Gud 30 per kilogram.
Calculated the following.
Price Elasticity of Demand
Income Elasticity of Demand
Cross Elasticity of Demand
What is mean perfect competition? Which are characteristics of perfect
competition?
Q.3 Write short note on following point: 14
Market Demand
Nature of managerial economics
Q.4 Write any one. 14
What is the Break Even Point? Through linear revenue and cost functions,
graphically shows the level of output, discuss about limitations of it.
Explain the characteristics and price determination under oligopoly
competition.
Q.5 Write any one. 14
What is demand law? What are assumptions and exemptions of the demand
law?
Discuss the silent features and significance of managerial economics.