MBA 1st semester Exam Paper: Managerial Economics
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.