Deemed University 2011 B.B.A University: Lingayas University Term: III Title of the : Managerial Economics-I - Question Paper

Roll No. ..

 

Lingayas University

BBA-MBA (Integrated) 1^st Year (Term III)

Examination May 2011

Managerial Economics-I (BA - 1110)

 

 

[Time: 3 Hours] Max. Marks: 100]

 

Before answering the question, candidate should ensure that they have been supplied the correct and complete question paper. No complaint in this regard, will be entertained after examination.

 

Note: Attempt five questions in all. All questions carry equal marks. Select two questions from Section A and two questions from Section B. Question no. 8 (Section C) is compulsory.

 

Section A

 

Q-1. Explain law of variable proportions using appropriate production function. Why is this law so called? Explain with example. [20]

 

Q-2. Explain and distinguish between partial and general equilibrium with diagram. Why general equilibrium analysis is more preferable over partial equilibrium. [20]

 

Q-3. Write short notes on following (Attempt any two):

(i) Explicit and implicit cost

(ii) Perfect competition

(iii) Monopoly and monopolistic [210=20]

Section B

 

Q-4. Explain law of diminishing marginal utility and law of equi-marginal utility by using cardinal utility approach. [20]

 

Q-5. (a) At Rs 25 per unit consumer buys 40 units of a commodity and the Price Elasticity of demand is -2. How much will he buy if the price Reduces to Rs 10 per unit? [10]

(b) Explain the law of demand and the factors affecting elasticity of demand. [10]

 

Q-6. Explain long run average cost curve according to modern theory. Why LAC Curve is L shaped? [20]

 

Q-7. What are the assumptions of theory of oligopoly? How are these assumptions different from those of theory of monopolistic competition? [20]

 

Section C

 

Q-8. CASE STUDY

Demand forecasting an important base for any future decision like pricing decision, advertising decision, new produce decision etc. justify the statement with reference to Indian context and explain how a manager can choose the right technique for forecasting which will help him to make right decision. [20]