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Summer 2011- May drive

Masters of Business Administration- Semester 1

MB0045 –Managerial Economics - 4 Credits

(Book ID: B1131)

Assignment Set- 1 (60 Marks)


Note: Each question carries 10 Marks. Answer all the questions.

1. Explain what is price elasticity of demand and outline the determinants of price elasticity of demand with examples.

2. In the newspapers we read about mergers between companies in the same line of business. What are the economies of scale that can be availed of with mergers.

3. Discuss the features of monopolistic competition and the method of price determination in monopolistic competition.

4. If you were to buy a car, what are the factors that would affect the demand for your purchase.

5. When factors of production are combined to produce a particular level of output, what would be the effect on total product when all factors are kept fixed and only one factor is varied. For example, when the amount of land used for producing a particular crop is kept the same, and the other factors of production like labour, fertilisers, etc is increased.

6. A company wishes to project the production requirements of a particular product in the coming years. How will the company forecast the demand in the coming years, using the trend projection method.


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