Do send your query at :
or call us at :08263069601
Xaviers Institute of Business Management Studies
Managerial Economics
SECTION – A (ANSWER ANY 5)
Question. 1. What is Demand ? Explain the nature of demand .
ANS : Demand is an economic principle referring to a consumer’s desire to purchase goods and services and willingness to pay a price for a specific good or service. Holding all other factors constant, an increase in the price of a good or service will decrease the quantity demanded, and vice versa. Market demand is the total quantity demanded across all consumers in a market for a given good. Aggregate demand is the total demand for all goods and services in an economy. Multiple stocking strategies are often required to handle demand.
Question. 2. Differentiate between risk, certainity and uncertainity ?
ANS : 1.)Risk – In the ordinary sense, the risk is the outcome of an action taken or not taken, in a particular situation which may result in loss or gain. It is termed as a chance or loss or exposure to danger, arising out of internal or external factors, that can be minimised through preventive measures. In the financial glossary, the meaning of risk is not much different. It implies the uncertainty regarding the expected returns on the investments made i.e. the probability of actual returns may not be equal to the expected returns. Such a risk may include the probability of losing the part or whole investment. Although the higher the risk, the higher is the expectation of returns, because
Question. 3. Explain the optimization models and write their uses? [16]
Question. 4. Define managerial economics. Discuss the significance of managerial economics in modern times.
Question. 5. Compare the demand pull inflation with cost push inflation ?
ANS : Definition of Demand-Pull Inflation : Demand-pull inflation is a type of inflation that occurs when aggregate demand grows rapidly, outpacing aggregate supply. When demand soars above supply, this leads to prices rising to increase profits. Demand-pull inflation usually occurs when the economy is at
Question. 6. Explain the significance of the distinction of the fixed cost and the varisble cost in the determination of the equilibrium of a farm? [16]
Question. 7. What is money illusion? Why is the existence of money illusion important to the derivation of the short run Phillip curve? [16]
Question. 8. What do supply schedule and supply curve show ? what is the usual shape of the supply curve ? why ?
ANS : A supply schedule is a tabular depiction of the relationship between price and quantity supplied, represented graphically as a supply curve.
A.)The supply curve plots the quantity that is willingly supplied at any given price.
B.)The individual supply curves can be summed by quantity provided at a specific price to achieve an aggregate supply curve.
Dear students, Get assignments and Case studies
Do send your query at :
or call us at :08263069601