Andhra University 2007 B.B.A ADVANCED MANAGERIAL ECONOMICS - Question Paper

ANDHRA UNIVERSITY

SCHOOL OF DISTANCE EDUCATION

MASTER OF BUSINESS ADMINISTRATION

I YEAR ASSIGNMENT ques. PAPER 2007 – 2008

(Applicable to Admitted Batches from 1998 to 2006)

ADVANCED MANAGERIAL ECONOMICS

Assignment No. 1

ans All ques. : five x five = 25 Marks

1. explain the role of costs in managerial planning of a firm.

2. State the salient features of LAC Curve. What is its usefulness in
managerial decision making ?

3. explain the salient features and significance of Managerial
Economics.

4. What is Elasticity of Demand ? On What factors does elasticity of
demand depend ?

5. discuss the different theories of Profit. How do you measure the profit.
Assignment No. 2

ans All ques. : five x five = 25 Marks

1. discuss different methods of investment proposals for the valuation of
projects.

2. “Monopoly price need not necessarily be high”. Do you agree ?

3. “Product differentiation is a form of non-price competition”. Comment.

4. What is profit forecasting ? What is the role of break-even analysis ?

5. A firm has purchased a plant to manufacture a new product, the cost
for which is provided beneath :

Estimated annual sales 24,000 units

Estimated costs :

Material 4.00 per unit
Direct labour 0.60 per unit
Overheads 24,000 per year
Administration expenses 28,800 per year
Selling expenses 15% of sales
Selling expenses :

(i) compute the selling price, if profit per unit is Rs. 1.02 ; and

(ii) obtain out the break-even point in terms of units of output

Earning:   Approval pending.