MS-09 - Managerial Economics

 

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Management Programme

 

MS-09: Managerial Economics

 

Q1. “Profit Maximization is the main objective of a firm”. Discuss this statement with the help of an example.

Ans. Most production firms are risk averse and adapt their objective of profit maximization to maximizing the expected utility. Returns have to be incorporated in the context of their riskiness.

Profits can't tell us the true financial strength of a company. ... If profit maximization is the ultimate goal of the firm, they will look into the total profit that often tend managers to take wrong decisions while investing. It happens because they believe that profit maximization is the ultimate goal.

 

Q2. What are the marketing approaches to demand measurement? Explain how the Delphi Technique is different from Market Experiments Technique?

Ans.

 

Q3. Find (1) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q=4 and Q=6

TC=3Q2+7Q+12

Ans.

 

Q4. Oligopoly is the most prevalent form of market structure in the manufacturing sector. Describe this statement with the help of an example.

Ans.

 

 

Q5. Does Price Discrimination exist in the real world? Discuss with reference to any particular product or service?

Ans.

 

Q6. Write short notes on the following: -

(a) Market Demand Schedule

(b) Direct Costs and Indirect Costs

(c) Peak Load Pricing

 

 

 

 

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