Total No. of Questions 08] [Total No. of Pages 02
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
MANAGERIAL ECONOMICS
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) Concept of managerial economics.
Demand schedule.
Cross-elasticity of demand.
Opportunity cost.
Behavioral theory of the firm.
Public investment decision.
SECTION B
Answer any three of the following questions. x 15 45)
Q2) Explain basic techniques of managerial economics.
Q3) What is law of demand? Explain exceptions to it.
Q4) What is elasticity of demand? Explain various types of elasticities of demand.
Q5) Explain law of variable proportion.
Q6) Explain price output decision under monopolistic markets.
Q7) Explain managerial theories of firm.
SECTION C
(Compulsory)
Q8) Case Study:
Navarang-A movie theatre in a town has two types of customers: college
students and senior citizens. The college students will watch the Sunday
morning movie, if the ticket price is Rs.50 or less and the senior citizens will
watch, if the price is Rs.25 or less. Also assume that there is no other cost in
showing the movie, so the profit is same as the revenue from the sale of tickets.
On Sunday morning, there are 40 college students and 20 senior citizens in the
theatre. The theatre has three price strategies. Uniform rate of Rs.25 for all
uniform rate of Rs.50 for all and Rs.50 for college students and Rs.25 for
senior citizens.
Calculate the profits of the theatre under above three strategies each.
Advise and give your comments on the above strategies and profits. Which
price strategy or option would you advise, as a economist?