Total No. of Questions [Total No. of Pages 2
M.B.A. DEGREE EXAMINATION, MAY 2018
First Year
Managerial Economics
Time 3 Hours Maximum Marks 70
SECTION A
Answer any three questions × 5 15)
Q1) Wealth Maximisation
Demand forecasting
Scope of production function
Profit measurement
Production function
Oligopoly
SECTION B
Answer any three questions × 15 45)
Q2) Describe the various objectives of firm.
Q3) Briefly write about methods of forecasting for new products.
Q4) Describe briefly about various economics of large scale production.
Q5) Explain different types of elasticity of demand.
Q6) Discuss the difficulties involved in the measurement of profit.
Q7) Write a note on role and importance of public sector.
SECTION C
Case Study (Compulsory) (10 Marks)
Q8) A firm has purchased a plant to manufacture a new product cost data for the plant is
given below
Estimated annual sales 24,000 units
Estimated costs
Material Rs. 4.00 per unit
Direct Labour Rs. 0.60 per unit
Over head Rs. 24,000 per year
Administrative expenses Rs. 28,000 per year
Selling cost of sales Rs. 1,590 per year
Questions
Calculate the selling price if profit per unit is Rs. 1.02, and
Find out the Break even point in terms of output.