MANAGERIAL ECONOMICS

MANAGERIAL ECONOMICS

SECTION - A
1. Explain the equi-marginal principle. Elucidate with the help of examples.
2. Discuss any five variables, which can be included in the demand function and can have a major impact on the demand.
3. Explain the production function with two variable inputs i.e. production isoquants giving examples.
4. What is Oligopoly ? Explain the important characteristics of Oligopoly.
5. Write short notes on the following :
(a) Bundling
(b) Cartels.

SECTION - B
6. Assume a firm has the following total revenue and total cost functions :
TR =320Q — 2Q2
TC =1800 +50Q + 3Q2
Determine :
(a) The level of output at which the firm will be maximizing profits ;
 (b) The level of output at which total revenue will be maximum.
7. (a) Explain why a firm facing a downward sloping demand curve would never produce the inelastic (ep < 1) portion of the demand curve.
    (b) When would the firm operate at the point where demand curve is unitary elastic ?