Test Papers / Previous Question Papers of IGNOU MS9 Managerial Economics December 2005

MANAGEMENT PROGRAMME
Term-End Examination

MS9 MANAGERIAL ECONOMICS

December 2005

Time: 3 hours
Maximum Marks: 100
(Weightage 70%)

SECTION A

1. Discuss the role of any two of the following in Decision Making :
(a) Marginal Return on Investment
(b) The Equi-Marginal Principle
(c) The Opportunity Cost Principle

2. Explain the law of demand. What causes the market demand curve for a commodity to shift upwards and to shift downwards? Give examples?

3. Explain with the help of graph(s) how the long run average cost curve (LRAC) is derived from the short run averagecost curves (SRAC).

4. From the information given below, calculate the Marginal Utility for each unit consumed and interpret the result.

5. Write short notes on any three of the following :
(a) Entry barriers
(b) Decision tree
(c) Price-cross-elasticity of demand
(d) Internal rate of return
(e) Optimisation

SECTION B

1. Discuss the fundamentals of Managerial Economics. Explain the scope of Managerial Economics as tools of managerial decision making.

2. (a) Explain the law of demand.

(b) What are the differences between a firm's demand curve and market demand curve? Give illustrations.

3. Explain the econometric method of estimating cost function. Why is this method more popular than the other methods of cost estimation?

4. (a) Distinguish between perfect competition and oligopolistic competition. Give examples.

(b) Explain the concept of product differentiation with special reference to monopolistic competition.

5. Write short notes on any three of the following :
(a) Delphi technique
(b) Opportunity cost
(c) Cross-price elasticity
(d) Distinguish between accounting costs and economic costs
(e) Pricing of joint products

SECTION C

6. Define forecasting technique. Discuss the various types of forecasting techniques. (30)

7. The production department of a firm reported the following information for the month of May 2005.

Calculate
(i) Average cost
(ii) Average variable cost
(iii) What would be the total profit of the firm if it sells the entire output at a price of Rs. 60 per unit? (10)

The following is a partial list of Testpapers of similar / related courses to Managerial Economics offered by IGNOU

• MS9(S) Managerial Economics December 2005
• MS9 Managerial Economics June 2005