Master of Business Administration (M.B.A.) Semester-I (Outcome Based C.B.C.S.) Examination Managerial Economics Paper-1
Master of Business Administration (M.B.A.) Semester-I (Outcome Based C.B.C.S.) Examination Managerial Economics Paper-1
1. (A) A well established multinational company is selling very famous brand of soaps all over
India, for last 20 years. They have large number of customers spread across India. They
also have well recorded past sales data. Explain any two methods of demand forecasting
which can be used by the company.
OR
(B) Following is the individual demand schedule for consumers A, B and C :
Price A’s Demand B’s Demand C’s Demand
10 140 130 60
20 130 120 60
30 120 110 60
40 110 100 60
50 100 80 60
Find :—
(i) Market demand schedule.
(ii) Elasticity of demand for market when price increases from Rs. 30 to Rs. 40.
(iii) Elasticity of demand for market when price reduces from Rs. 40 to Rs. 30.
(iv) Draw market demand curve.
2. (A) Elaborate the economies and diseconomies of scale of a well established and large scale
logistic company, DTDC Ltd.
OR
(B) Analyze various stages of law of production in short run. Analyze in which stage, rational
decision of production is possible. Why ?
3. (A) Suppose a firm is operating under perfectly competitive conditions in the market. It faces
following revenue and cost conditions :
TR = 12Q
TC = 2 + 4Q + Q2.
Determine the equilibrium level of output. Calculate total revenue, total cost and profit made
at that point.
OR
(B) Analyze and explain individual firm’s price output equilibrium in short run and long run
conditions under monopoly.
CC—13344 1 (Contd.)
4. (A) Explain effects of inflation on distribution of income and wealth.
OR
(B) Explain circular flow of income with respect to Indian Economy.
5. (A) Calculate (i) National Income and (ii) Personal Disposable Income from following information :
Particulars Rs. (in crores)
GDPMP 6000
Receipt of factor income from rest of the world 150
Payments of factor income to the rest of the world 225
Depreciation 800
Indirect taxes minus subsidies 700
Corporate Profits 1200
Dividend 600
Transfer payments to persons 1300
Personal taxes 1500
OR
(B) Identify the current phase of business cycle in India. Explain the symptoms and causes of
the current phase.
CC—13344 2 AHK/KW/19/6692