MB0042–Managerial Economics

Spring-2015

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Master of Business Administration- MBA Semester 1

MB0042–Managerial Economics-4 Credits

(Book ID: B1625)

Assignment (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60

Q1. What is production function and its uses? Explain the two types of production functions.

Answer: Production function and its uses:

Production function relates physical output of a production process to physical inputs or factors of production. The production function is one of the key concepts of mainstream neoclassical theories, used to define marginal product and to distinguish allocate efficiency, the defining focus of economics. The primary purpose of the production function is to address allocate efficiency in the use of factor inputs in production and the resulting distribution of income to those factors, while abstracting away from the technological

Q2. Consumers' interview method is a survey method used for estimating the demand for new products. This method is very important with regard to collect the relevant information directly from the consumers with regard to their future purchase plans. Opinion surveys and direct interview method are the two important techniques among all. Describe these two methods in detail.

Answer. Interviews are a far more personal form of research than questionnaires. In the personal interview, the interviewer works directly with the respondent. Unlike with mail surveys, the interviewer has the opportunity to probe or ask follow-up questions. And, interviews are generally easier for the respondent, especially if what is sought is opinions or impressions. Interviews can be very time consuming and

Q3. A cost-schedule is a statement of variations in costs resulting from variations in the levels of output and it shows the response of costs to changes in output. If we represent the relationship between changes in the level of output and costs of production, we get different types of cost curves in the short run. Define the kinds of cost concepts like TFC, TVC, TC, AFC, AVC, AC and MC and its corresponding curves with suitable diagrams for each.

Answer:  Total fixed cost and output:

TFC refers to total money expenses incurred on fixed inputs like plant, machinery, tools & equipments in the short run. Total fixed cost corresponds to the fixed inputs in the short run production function. TFC remains the same at all levels of output in the short run. It is the same when output is nil. It indicates that whatever may be

Q4. Inflation is a global Phenomenon which is associated with high price causes decline in the value for money. It exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon.

Answer. Inflation

Inflation has become a global phenomenon in recent years. Development economics is very much associated with inflation. An in-depth study of inflation is of paramount importance to a student of managerial economics. The term inflation is used in many senses and hence it is very difficult to give a generally accepted, universally agreeable,

Q5. Discuss the practical application of Price elasticity and Income elasticity of demand.

Answer. Practical application of price elasticity of demand

Few examples on the practical application of price elasticity of demand are as follows:

1. Production planning – It helps a producer to decide about the volume of production. If the demand for his products is inelastic, specific quantities can be produced while he has to produce different quantities, if the demand is elastic.

Q6. Define revenue. Explain the types of revenue and the relationship between TR, AR and MR with an example of a hypothetical revenue schedule.

Answer. Revenue is the total amount received by a business or recognized as earned when the business sells something, usually services and goods. In modern accountancy, revenue is recorded when it is earned not when the cash is received from customers. For example when a phone service provider records revenue

Spring-2015

Get solved assignments at nominal price of Rs.120 each.

Mail us at: subjects4u@gmail.com or contact at

08894344452, 08894387490