Hall Ticket No Question Paper Code: CMB003
INSTITUTE OF AERONAUTICAL ENGINEERING
(Autonomous)
MBA I Semester End Examinations (Regular) February, 2017
Regulation: IARE-R16
MANAGERIAL ECONOMICS
(Master of Business Administration)
Time: 3 Hours Max Marks: 70
Answer ONE Question from each Unit
All Questions Carry Equal Marks
All parts of the question must be answered in one place only
UNIT I
1. Explain the nature and scope of managerial economics. Discuss the significant roles of managerial
economist in the current growing business scenario.
The opportunity cost to a firm of using a resource is zero when the market value of the resources
is zero'. Discuss the statement using relevant examples.
2. How would you apply the knowledge of Economics to the managerial decision making?
Discuss the fundamental economic principles of managerial economics with its applications.
UNIT II
3. Why does the normal demand curve slope downwards? Can there be an upward rising demand
curve?
Explain the factors influencing elasticity of supply.
4. Explain the significance of elasticity of demand.
Discuss different methods of demand forecasting with examples.
UNIT III
5. How does the output change as its inputs are proportionately increased? Explain
Discuss the Cobb-Douglas production function.
6. Explain the different periods in production with examples.
Explain the law of variable proportion with the help of total product, marginal product and
average product.
UNIT IV
7. Explain the relation between cost curves in the short run.
Discuss the differences with the concept of cost between economists and accountants.
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8. Explain nature and various determinants of cost.
Distinguish between short run and long run costs with a neat diagram.
UNIT V
9. Explain how price is determined under monopoly during short run?
Explain the features of monopoly with examples.
10. Explain the determinants of market structure.
Discuss the Sweezy's kinked demand curve model of oligopoly with its assumptions.
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