B.V. Patel Institute of Business Management, Computer & Information Technology, Uka Tarsadia University : Managerial Economics

Transcription

1 Unit-1 Introduction of Managerial Economics and Cost Analysis Answer the following. (1 mark) 1. Define Managerial Economics? 2. How does Managerial Economics help managers to become efficient and competent? 3. What is opportunity cost? 4. How opportunity cost is determined? 5. When will fixed cost be maximum? 6. What are the other names of fixed cost? 7. What are the other names of variable cost? 8. Which costs are called variable cost? 9. When does variable cost become nil/zero? List an example of variable cost. 10. What is total cost? 11. What is marginal cost? Briefly answer the following. (2 marks) 1. What aspects of economics are the concerns of Managerial Economics? 2. List features of Managerial Economics? 3. Why is it said that economics is the study of allocation of resources available to a firm? 4. Why is it said that Managerial Economics serves as a bridge between the economic theory and business management? 5. List any one contribution of Managerial Economics in business decision making 6. Write an example of opportunity cost. 7. What is the significance of opportunity cost? 1

2 8. What is the limitations of opportunity cost? 9. What is meant by fixed cost? 10. Draw the diagram of fixed cost. 11. Why does the fixed cost curve not pass through the origin? 12. Draw the diagram of variable cost and explain. 13. Write an example of various costs included in computing total cost. 14. What is total cost? Also, write it in symbols. 15. Why marginal cost is called incremental cost? 16. What is indicated by U shape of marginal cost curve? Answer the following (limit 250 words). (5 marks) 1. Write a short note on importance of managerial economics in business decisions. 2. Explain the concept of opportunity cost? 3. Explain the concept of fixed cost. Write formula and illustrate with the help of an example. 4. Why do fixed costs become variable in the long run? 5. Explain the concept of variable cost. 6. Draw the diagram of total cost. Why does total cost curve never pass through the origin? 7. Explain the concept of marginal cost. 8. Explain the relationship between AC and MC with the help of a diagram. 9. Explain the concept of total cost, total fixed cost and total variable cost with the help of an example. 2

3 Unit -2 Production Analysis: Answer the following. (1 mark) 1. Write the formula for calculation of marginal product. 2. What is meant by iso-quant? 3. What is the other name of equal product curve? 4. List the factors of production. 5. Write the formula for calculation of total product. 6. Write any one characteristic of total product curve. Briefly answer the following. (2 marks) 1. What is marginal product? 2. Draw the diagram showing relationship between average product, marginal product and total product. 3. What are the assumptions of iso-quants? 4. Draw the diagram of an iso-quant. 5. Explain any one property of iso-quant. 6. List any two of the assumptions of law variable proportions. 7. List the three stages of law of variable proportions. 8. Draw the diagram of different stages of law of variable proportions. 9. What is the stage of increasing returns? 10. What is the stage of diminishing returns? 11. What is the stage of negative returns? 12. What are the characteristics of marginal product curve? 3

4 Answer the following (limit 250 words). (5 marks) 1. Write a short note on Marginal Product. 2. Explain the relationship between Average Product, Marginal Product and Total Product with the help of a schedule or diagram. 3. Explain different properties of iso-quant. 4. Explain the law of variable proportion with the help of a diagram. 4

5 Unit-3 Revenue Analyses and Market Analysis Answer the following. (1 mark) 1. What is revenue? 2. List different types of revenue. 3. Write the formula for calculation of total revenue (TR). 4. Write the formula for calculation of average revenue (AR). 5. Write the formula for calculation of marginal revenue (MR). 6. List different type of revenue. 7. Express total revenue (TR) symbolically. 8. Express marginal revenue (MR) symbolically. 9. Express average revenue (AR) symbolically. 10. Define Market. 11. List any one feature of market. Briefly answer the following. (2 marks) 1. What is meant by average revenue (AR)? How is it obtained? 2. What is meant by total revenue (TR)? How is it obtained? 3. What is meant by marginal revenue (MR)? How is it obtained? 4. Illustrate marginal revenue with the help of an example. 5. The demand curve for a firms product is also called average revenue curve- list two important points in this regard. 6. Why are price and revenue one and same thing? 7. List any two relationships between average revenue (AR) and marginal revenue (MR). 5

6 8. Write Cournet s definition of market. 9. List classifications of market on the basis of area, time and competition. Answer the following (limit 250 words). (5 marks) 1. Explain the relationship between total revenue (TR), average revenue (AR) and marginal revenue (MR). 2. Write a short note on marginal revenuer (MR). 3. Explain the relationship between average revenue (AR) and marginal revenue (MR) under the following condition: a. When average revenue (AR) curve is parallel to X axis. b. Under perfect competition. c. When average revenue (AR) curve is concave/ convex to the origin. 4. Explain the concept of market. Write its different features and different criteria for classification of market. Also, explain classification either on the basis of time or on the basis of nature of competition. 5. Write a short note on classification of market. 6

7 Unit -4 Market Competitions Answer the following. (1 mark) 1. List any one the assumptions of perfect competition. 2. What does a demand curve show? 3. What does a supply curve show? 4. What is equilibrium price? 5. What is equilibrium amount? 6. What is meant by monopoly? 7. List any one feature of monopoly. 8. List any one barrier to the entry of rivals in monopoly. 9. How is equilibrium output determined? 10. What is meant by price discrimination? 11. What is meant by discriminating monopoly? Briefly answer the following. (2 marks) 1. List any four features of perfect competition. 2. What is meant by perfect competition? 3. What is meant by imperfect market? 4. What happens if price is greater than equilibrium price in perfect competition? 5. Explain the concept of single seller in the monopoly. 6. Explain the concept of absence of close substitutes in the monopoly. 7. Explain the concept of strong barriers to the entry of rivals in the monopoly. 8. List institutional barriers in monopoly. 7

8 9. List any two cut-throat tactics used by monopoly. 10. What is meant by the statement- Power to influence price is the very essence of monopoly. 11. Draw the diagram of price determination under monopolists. 12. In monopoly what are the two alternatives to maximize profit? 13. List any two essential conditions for price discrimination. 14. Write Mrs. Robinson s definition of price discrimination. 15. List the three types of price discrimination. 16. List conditions under which price discrimination is possible. 17. Write any two effects of price discrimination. Answer the following (limit 250 words). (5 marks) 1. Write a short note on features of perfect competition. 2. List the features of perfect competition and explain the concept of large number of buyers and sellers and free entry and exists of firm. 3. How price is determined under perfect competition? Draw the diagramme and explain. 4. Under the conditions of perfect competition the demand for the product of an individual firm is perfectly elastic - explain with the help of a demand schedule and curve. 5. Explain price determination under monopoly. Illustrate with the help of a diagrame. 6. Discuss the nature and shape of demand curve under monopoly. 7. What is perfect competition? Compare the features of perfect competition and monopoly. 8. Briefly discuss different situations under which price discrimination is possible. 8