DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
First Semester
MANAGERIAL ECONOMICS
(Upto 2012-13 Academic year and 2013 calendar year)
Time Three hours Maximum 100 marks
PART A — × 8 40 marks)
Answer any FIVE questions.
1. Define Managerial Economics and bring out its scope.
2. Briefly explain the different types of elasticity of demand.
3. Given the Selling Price per unit as Rs. 20 and Variable
cost per unit as Rs. 16, and Fixed cost as Rs. 10000,
determine the BEP Sales.
4. What do you mean by Price discrimination? In what form
of market is this pricing in existence?
5. Briefly discuss the four factors of production and their
relevance.
6. Distinguish between Perfectly and Imperfectly
competitive markets.
7. Will falling value of local currency benefit importers or
exporters?
8. Can the NPV and IRR methods of appraising capital
expenditure yield different results?
Sub. Code
13
DE-774
2
WK 6
PART B — × 15 60 marks)
Answer any FOUR questions.
9. Explain the factors determints the demand of the
product.
10. Explain the different methods which can be used to
determine the price of new products.
11. Explain the different kinds of pricing.
12. How can impact of changing price on demand measured
and bring out the significance of such impact
measurement on business decision making.
13. AXZ Ltd. Is considering to invest in two machines, X or Y
both costing Rs. 20,000. The company's cost of capital is
and it is subject to a tax at the rate of 30%. 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.
Year 1 2 3 4 5
X 8000 10000 12000 14000 16000
Y 16000 14000 12000 10000 8000
14. Discuss the nature of elasticity of demand for onions in
the context of support in its price.
15. Explain the different methods of calculating national
income.