M.Com. I (Semester (CBCS) Examination, 2017
MANAGERIAL ECONOMICS I
Day Date: Thursday, 20-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Drew diagrams if necessary
Figures to the right indicate full marks.
Q.1 Choose the correct alternative from the given alternatives: 14
Complementary goods have:
The same elasticity of demand
Very low price elasticity of demand
Negative cross price elasticity of demand with respect to each
other.
Positive income elasticity of demand
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.
Total cost of production is the combination of fixed cost of
production and
Marginal cost of production
Variable cost of production
Average cost of production
None of these

A.F.C. A.R.
A.C. A.V.C.
Who have first distinguished between micro economics and macro
economics?
Adam Smith David Ricardo
Alfred Marshall Ragner Frisch
Page 1 of 3
SLR-QA -02
Match I List to the II list
List I List II
Wealth of Nation Paul M. Sweezy
Break-Even Point Alfred Marshall
Kinky Demand Curve Joel Dean
Elasticity of Demand Adam Smith
Answer:
i ii iii iv
a b c d
d c a b
d a c b
d c b a
What is the point elasticity of demand?
Who is the father of economics?
Adam Smith David Ricardo
Alfred Marshall John M. Keynes
10) Which commodity isn't the exception of demand laws?
Necessary Commodity Giffen Commodity
Normal Commodity None of the above
11) Which one of the following curve is not U shaped?
AVC AFC AC MC
12) Consider the following statements:
" For a firm to be in equilibrium"
MR=MC ii) MR Curve should cut MC curve from below
iii) MC curve should cut MR curve from below iv) AR=MR
Which statements are correct from above?
ii, iii and iv i and iii only i and iv ii and iv
13) Contribution margin percentage is 30% and selling price is $7200
then contribution margin per unit will be
$360 $240
14) At break-even point, an operating income must equal to
$3,000 $2,000 Zero
Q.2 Write short note on following point: 14
Price elasticity of demand
Significance of Managerial Economics
Q.3 Write answer in brief on the following question: 14
Given the following total cost and revenue
TC= 15000+45Q
TR= 75Q
Find the Break-Even Point
Present Break-Even-Point through graph
Distinguish between perfect completion and imperfect
competition
Q.4 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.
Q.5 Write any one: 14
Explain the meaning and assumptions of Break-Even Analysis
through the Non-Linear Total Cost Curve and Total Revenue
Curve.
Explain the nature and functions of Managerial Economics.