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ASSIGNMENT
| DRIVE | WINTER 2014 |
| PROGRAM | MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2 |
| SEMESTER | 1 |
| SUBJECT CODE & NAME | MB0042- MANAGERIAL ECONOMICS |
| BK ID | B1625 |
| CREDIT & MARKS | 4 Credits, 60 marks |
Q.1 What is production function and its uses? Explain the two types of production
functions.
Answer: A production function shows the relationship between inputs of capital and labor and other factors and the outputs of goods and services.
In macroeconomics, the output of interest is Gross Domestic Product or GDP
The simplest possible production function is a linear production function with labor alone as an input.
For example, if one worker can produce 500 pizzas in a day (or other given time period) the production function would be
Q2. Monopoly is the situation there exists a single control over the market producing a commodity having no substitutes with no possibilities for anyone to enter the industry to compete. In that situation, they will not charge a uniform price for all the customers in the market and also the pricing policy followed in that situation.
Answer: A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit.
A situation in which a single company or group owns all or nearly all of the market for a given type of product or service.
Just being a monopoly need not make an enterprise
Q3. A cost-schedule is a statement of variations in costs resulting from variations in the levels of output and it shows the response of costs to changes in output. If we represent the relationship between changes in the level of output and costs of production, we get different types of cost curves in the short run. Define the kinds of cost concepts like TFC, TVC, TC, AFC, AVC, AC and MC and its corresponding curves with suitable diagrams for each.
Answer: A proper understanding of the nature and behaviour of costs is a must for regulation and control of cost of production. The cost of production depends on money forces and an understanding of the functional relationship of cost to various forces will help us to take various decisions. Output is an important factor, which influences the cost.
The cost-output relationship plays an important role in determining the optimum level of production. Knowledge of the cost-output relation helps the manager in cost control, profit prediction, pricing, promotion etc. The relation
Q 4. Inflation is a global Phenomenon which is associated with high price causes decline in the value for money. It exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon.
Answer: Define Inflation- Inflation is commonly understood as a situation of substantial and rapid increase in the level of prices and consequent deterioration in the value of money over a period of time. It refers to the average rise in the general level of prices and fall in the value of money.
Inflation is an upward movement in the average level of prices. The opposite of inflation is deflation, a downward movement in the average level of prices
Q.5 Discuss the practical application of Price elasticity and Income elasticity of demand.
Answer: Price elasticity of demand :
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price (ceteris paribus, i.e. holding constant all the other determinants of demand, such as income). It was devised by Alfred Marshall.
Q.6 Discuss the scope of managerial economics.
Answer: Managerial economics is the “application of the economic concepts and economic analysis to the problems of formulating rational managerial decisions”.
Managerial Economics deals with allocating the scarce resources in a manner that minimizes the cost. As we have already discussed, Managerial Economics is different from microeconomics and macro-economics. Managerial Economics has a more narrow scope – it is actually solving managerial issues using micro-economics. Wherever there are scarce resources, managerial economics ensures that managers make effective and efficient decisions concerning customers, suppliers, competitors as well as within an organization. The fact of scarcity of
Dear students get fully solved SMU MBA WINTER 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )