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Administrator
Summer 2011- May drive

Masters of Business Administration- MBA Semester 2

MB0042 –Managerial Economics - 4 Credits

(Book ID: B1131)

Assignment Set- 2 (60 Marks)


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

1. The supply of a product depends on the price of the product. This determines the supply curve. What are the factors other than price that cause shifts in the supply curve.

2. Explain with examples the following types of costs:
a) Fixed costs
b) Variable costs
c) Marginal costs
d) average costs
e) short run costs

3. Indian railways is an example of monopoly in India. Discuss the factors that determine price in the different categories of travel in railways.

4. In the case of consumer durables, we find that when the product is introduced, the prices are high, but over time the prices reduce. What is the pricing policy followed?

5. In the long run, the long run average cost curve is an envelope of the short run cost curves. Discuss the concept behind the same.

6. A company wishes to introduce a new flavour of tea in the market. Discuss how the company can forecast demand for the new flavour of tea.


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