MBA 1st semester Exam Paper: Managerial Economics


MBA 1st Semester exam Paper : Gauhati University
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.

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