Osmania University (OU) 2009 M.Com Commerce Managerial Economics & Business Environment – - Question Paper

Managerial Economics & Business Environment – July 2009
Paper-II(102)
Time : three Hours Max.Marks:100

I. ans any 5 ques. in not exceeding 10 lines every. five X five = 25 Marks

1. Definition of Managerial Economics.
2. Law of Demand.
3. Cobb-Douglas production function.
4. Law of variable proportions.
5. Economics of scale.
6. Perfect competition.
7. Globalization.
8. Privatization.

II. ans all ques. in not more than four pages every 15 X five = 75 Marks

9.(a). (i)Explain the different price elasticities of demand.
(ii) The demand formula of a firm is provided by Q=3000-1.5P. compute point price elasticity when P=Rs.600.
Or
(b). (i).Explain the relationship ranging from total and marginal functions.
(ii).Mr.X quit his Rs.6,00,000 p.a job started his own consultancy. His previous year’s revenues and expenses are as follows:

Total Revenue – Rs.7,00,000
Advertising Expenses – Rs.30,000
Insurance Expenses – Rs.20,000
Secretary’s salary – Rs.12,000
Other expenses – Rs. 70,000

compute Mr.X’s accounting and economic profits and comment on his decision to quit the job to begin consultancy.

10. (a). (i). discuss with the help of Isoquants and Isocosts. How a firm optimizes the employment of inputs (K,L) in the long run.
(ii). Using the subsequent info. obtain the expansion path:
Q=10 K 0.5 L 0.5 , W=Rs.10 and r=Rs.20.

Or
(b). (i). discuss the different short run total and avg. cost curves.
(ii). A short-run cost function is provided by:
TC=1000 + 50Q + four Q2 + 0.2 Q3
Derive equations for TFC, TVC, AVC, AC, AFC and MC.

11. (a). discuss how the firm fixes its output under perfect competition..
Or
(b). discuss how price and output of a firm are determined under monopoly.

12. (a) discuss the different methods of Privatization.
Or
(b). define the advantages and limitations of Privatization.

13. (a) discuss the different agreements entered into by the member countries under WTO.
Or
(b). Critically evaluate the role of MNCs in the economic growth of developing countries.

Earning:   Approval pending.