MANAGEMENT PROGRAMME Term-End Examination December, 2015 MS-9 : MANAGERIAL ECONOMICS Time : 3 hours Maximum Marks : 100 Note : (i) There are two Sections : Section-A and Section-B. (ii) Attempt three questions from Section-A carrying 20 marks each. (iii) Section-B is compulsory and carries 40 marks.
SECTION - A 1. Explain the equi-marginal principle. Elucidate with the help of examples. 2. Discuss any five variables, which can be included in the demand function and can have a major impact on the demand. 3. Explain the production function with two variable inputs i.e. production isoquants giving examples. 4. What is Oligopoly ? Explain the important characteristics of Oligopoly. 5. Write short notes on the following : (a) Bundling (b) Cartels.
SECTION - B 6. Assume a firm has the following total revenue and total cost functions : TR =320Q — 2Q2 TC =1800 +50Q + 3Q2 Determine : (a) The level of output at which the firm will be maximizing profits ; (b) The level of output at which total revenue will be maximum. 7. (a) Explain why a firm facing a downward sloping demand curve would never produce the inelastic (ep < 1) portion of the demand curve. (b) When would the firm operate at the point where demand curve is unitary elastic ?
