Saurastra University 2006 M.Com Commerce Managerial Economics and Business Environment - Question Paper

M. Com. (Part I) exam
March / April – 2006
Managerial Economics and Business Environment
Instructions : (1) Write answers clearly and to the point.
(2) Figures on right side indicate marks of ques..
1 (a) describe Managerial Economics and define it's scope. 10
(b) State clearly the concept of incremental and 10
marginalism. Which of the 2 concepts is more useful in
decision making ?
OR
1 (a) "Trend projection method is an indirect method of 10
demand forecasting, while opinion survey method is a
direct method, yet they are complementary to every
other." discuss this statement with illustration.
(b) discuss through diagram and illustration the 10
relationship ranging from cost and output in the short run.
2 (a) discuss the various forms of production function. 10
elaborate the main features of Cobb-Douglas production
function ?
(b) discuss price determination and equilibrium of a firm 10
in short run under perfect competition.
OR
2 (a) "The cost-plus pricing policy, though theoretically in – 10
appropriate, is much used in practice." explain critically.
(b) What is meant by ISO product Curve ? discuss with 10
diagram the salient features of ISO product curve.
3 Write notes on : (any two) 20
(1) Kinked demand curve and price rigidity
(2) Skimming price policy
(3) Demand determinants
(4) Economics of scale
(5) Determinant factors of cost function
4 Examine critically the internal and external factors of 20
business environment and discuss its role with reference to
current Indian Economy.
OR
4 (a) Narrate the central idea of new fiscal policy. 10
(b) discuss and evaluate the foreign trade-policy of 10
2004-2009.
5 (a) How will you assess the latest modifications in Monetary 10
policy of Government of India in situation of business
decisions ?
(b) What impact of the current industrial policy of the 10
Government of India has put on the business decisions of
the firms ?
OR
5 Write short notes : (any two) 20
(1) The nature of business during the 21st century
(2) Economic planning in India
(3) FEMA
(4) Importance of concept of social responsibility of Business
(5) Foreign collaboration and Indian business.

Earning:   Approval pending.