DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, DECEMBER 2017.
First Semester
MANAGERIAL ECONOMICS
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — x 8 40 marks)
Answer any FIVE questions.
1. Briefly illustrate the significance of Managerial
Economics.
2. Do you feel that Indian economy is progressing well?
3. Given the PV Ratio as 25% and fixed cost as Rs. 10,000,
what should be the sales to earn a profit of Rs. 20,000?
4. Differentiate between Perfect competition and Monopoly.
5. Explain the features of profits.
6. Briefly explain the phases of Business cycle.
7. Is India's Balance of Payments position at satisfactory
level? How?
8. Why is the Average cost curve U shaped?
Sub. Code
13
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wk11
PART B — × 15 60 marks)
Answer any FOUR questions.
9. The figures related to demand for a product at different
prices are given as under
Year 1 2 3 4 5
Demand (in units) 80 90 100 110 115
Price 25 23 21 20 19
Year 6 7 8 9 10
Demand (in units) 120 125 130 135 140
Price 18 17 16 15 14
You are required to calculate using Regression, the price
to be aquoted by the company to achieve a demand of
150 units.
10. If you are starting a soap manufacturing business, how
would you price your product?
11. ABC Ltd. is selling 20000 units of its product at Rs. 20
per unit, incurring a variable cost of Rs. 12 per unit and
fixed cost of Rs. 80,000. The company proposes to double
its present profits. What should be the quantum of sales
needed to accomplish this objective?
12. Explain the different methods which can be used to
forecast demand.
DE-3076
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13. AXZ Ltd. is considering to invest in two machines, X or Y
costing Rs. 50,000 and Rs. 90,000 respectively. The
company's cost of capital is and it is subject to a tax at
the rate of 50%. Given the cash inflows from the two
machines for their entire life, determine the NPV of the
two machines and suitably advice the company
management about investing in either of them.
Year 1 2 3 4 5
X 40,000 42,000 50,000 61,000 40,000
Y 80,000 98,000 87,000 73,000 40,000
14. Explain the causes for economies of scale.
15. Do you feel that India's LPG policy is serving the needs of
all citizens?