Gauhati University 2007 M.A commerce , -I , nagerial Economics - Question Paper

2007
COMMERCE
FIRST PAPER
(Managerial Economics)
Full Marks: 80
Time: three hours
The figures in the margin indicate full marks for the ques.
PART-A
ans all ques.
1. Indicate the most improper ans from the multiple options provided beneath every
question: 2×5=10
(a) Opportunity cost is a term which defines
(i) a bargain price for a factor of production
(ii) costs related to an optimum level of production
(iii) avg. variable cost
(iv) None of the- above
(b) According to 'profit maximisation theory' of the firm, management decides
(i) output level which maximises revenue
(ii) output level which minimizes cost
(iii) output level which maximises the difference ranging from revenue and cost
(iv) None of the above
(c) Demand for a product should have the subsequent prerequisite
(i) Desire for the commodity
(ii) Ability to buy
(iii) Willingness to pay
(iv) All of the above
(d) The Cobb-Douglas production function assumes that the elasticity of substitution is
(i) one
(ii) two
(iii) three
(iv) None of the above
(e) Shut-down point is 1 where a firm
(i) cannot reach a no-profit-no-loss position
(ii) can cover only the fixed cost
(iii) cannot cover the variable cost
(iv) cannot cover the fixed cost
2. Write short notes on any four: 3×4=12
(a) Incremental cost
(b) Cross-elasticity of demand
(c) Sunk cost
(d) Economic order volume
(e) Cost-plus pricing
3. ans any 2 questions: 5×2=10
(a) Distinguish ranging from Economic profit and Accounting profit.
(b) elaborate the limitations of pay-back period method of investment appraisal?
(c) Distinguish ranging from Autonomous demand and Derived demand.
PART-B
ans any 3 ques.
4. "Managerial economics bridges the gap ranging from economic theory and business
practises." explain. 16
5. Why is demand analysis important for successful production planning and capital
expansion? explain. 16
6. discuss the concept of production function and provide its economic significance.
12+4=16
7. elaborate the determinants of cost behaviour? Enumerate the various approaches for
estimating cost functions. 6+10= 16
8. Is 'perfect competition' a possible market situation in any of the economies of the
world? provide cause in support of your ans. 16
9. The initial investment of a project is Rs1,00,000 and it generates cash in flows as
follows .
Rs
1st year 40,000
2nd " 30,000
3rd " 50,000
4th " 20,000
5th " 15,000
You are needed to-
(a) obtain out the pay-back period;
(b) compute the accounting rate of return;
(c) compute the net current value at. 10% discount. 4+4+8= 16

Earning:   Approval pending.