MB0042- MANAGERIAL ECONOMICS

DRIVE	SPRING 2014
PROGRAM	MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2
SEMESTER	1
SUBJECT CODE & NAME	MB0042- MANAGERIAL ECONOMICS
BK ID	B1625
CREDIT & MARKS	4 Credits, 60 marks

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ASSIGNMENTS

1 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 statistically measured in terms of percentage increase inthe price index, as a rate (percent) per unit of time- usually a year or amonth. The trend of price indices reveals the course of inflation in theeconomy. Usually, the Wholesale Price Index (WPI) numbers are used tomeasure inflation. Alternatively, the Consumer Price Index (CPI) or thecost of living index can be adopted to measure the rate of inflation. Inorder to measure the

2 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.

Define Monopoly

Monopoly means existence of a single seller in the market. Monopoly is that market form in which a single producer controls the whole supply of a single commodity which has no close substitutes. Monopoly may be defined, as a condition of production in which a single firm has the power to fix the price of the commodity or the output of the

3 Define Fiscal Policy and the instruments of Fiscal policy.

Answer:- The term “fisc” in English language means “treasury”, and the policy related to treasury or government exchequer is known as fiscal policy. Fiscal policy is a package of economic measures of the Government regarding public expenditure, public revenue, public debt or public borrowings. It concerns itself with the aggregate effects of government expenditure and taxation on income, production and employment. In short, it refers to the

4 Describe Cost-Output Relationship in brief.

Answer:- Definition of cost-output relationship

Cost-output relations play an important role in almost all business decisions. It throws light on cost minimization or profit maximization and optimization of output. The relation between the cost and output is technically described as the “cost function”.The significance of cost-output relationship is so great that in economic analysis, the cost

5 Discuss the practical application of Price elasticity and Income elasticity of demand.

Answer: - Practical application of price elasticity

1. The concepts of elasticity and optimization

Students seem to have great difficulty with understanding the concept of elasticity. In part this perhaps reflects a reliance on the visual concept, for example they have less trouble when get to partial elasticity’s (which of course are very difficult to visualize), but also because of lazy terminology by teachers and lecturers . Too often in their initial introduction to economics  students are shown linear demand function that have different

6 Discuss the scope of managerial economics.

Answer:-Definition of Managerial Economics

“Managerial economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by the management”1. Mc Nair and Meriam say, “Managerial economics is the use of economic modes of thought to analyse business situation”

Scope of Managerial Economics

Dear students get fully solved  SMU BBA Spring 2014 assignments

Send your semester & Specialization name to our mail id :

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