MBA 1st semester Exam Paper: Managerial Economics
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| Managerial Economics |
Unit
1.Economics and managerial decision-making. Distinctive features of Managerial
Economics. Demand function and determinants. Types of elasticity of demand:
Price elasticity, Income elasticity, and cross elasticity. Methods for
forecasting of demand.
Unit.2
Equilibrium of firm:- The Marginal analysis. General and partial equilibrium;
Stable and unstable equilibrium. Dynamic and Static Equilibrium. Revenue and Cost concepts- total, average
and marginal. Cost function. Conceptual differences between economists’ and
accountants’ cost, opportunity cost, social and private cost, long run and
short run cost. Planning curve. Cost of multiple products.
Unit 3.
Production functions and its uses and features., Iso-quants and Iso-cost
curves. Least-cost combination of inputs. Returns to scale and laws of variable
proportion in production. Economies and diseconomies of scale.
Unit 4.
Marginal analysis of Equilibrium. Price-output determination under different
market structure.. Perfect and imperfect markets: Monopoly, Monopolistic
Competition and Oligopoly. Price Leadership. Price discrimination, and Dumping
in global market. Cost- plus pricing, Pricing of New Products- Problems and
policies.
Unit 5. Nature of Profit, theories of profit, profit
measurement- Accountants’ Vs Economists’ view. Profit policies-reasons for
limiting profits.. Cost and profit forecasting- break-even analysis.
Unit 6. Economists’ concepts of
Advertising. Theories of advertising- simplified analysis and simultaneous
determination of optimum advertising outlays, price and output.
