Nr R5 R7 12 Mba Managerial Economics

NR/R5/R7 Code No: 12/MBA M.B.A. I-Semester Examinations, January-2008. MANAGERIAL ECONOMICS Time: 3 hours

Max Marks: 60

Answer any FIVE questions All questions carry equal marks. --1.

“Managerial Economics is prescriptive rather than descriptive in character”. Discuss.

2.a) b)

What do you mean by equilibrium of a firm? What are the conditions of a firm?

3.

Define economics and distinguish carefully between ‘positive economics’ and ‘welfare economics’.

4.

Distinguish between a) Autonomous demand and Derived demand b) Short-Term demand and long-term demand and c) Industry demand and firm demand

5.a) b)

Discuss the properties of Iso-quants. What is the difference between returns to scale and returns to proportion?

6.a) b)

What are cost determinants? Examine the conditions essential for cost reductions.

7.a) b)

What is a perfect Competition? What are the essential conditions of perfect competition?

8.

“Profit is the reward for successful innovation”. Elucidate. ---