Dibrugarh University - Business Economics - 2nd Semester (May' 2012)

1.       Answer as Directed: 1x8=8
a)      Business Economics is micro/macro economics in nature.
b)      Business Economics is also know as ________________.
c)       Draw a perfectly inelastic demand curve.
d)      Give an example of Joint Demand.
e)      If marginal product is zero, how much will be the total product?
f)       Total revenue = price x ________________.
g)      Mention the type of market where a particular commodity is sold at uniform price.
h)      Give an example if selling cost.

2.       Answer the following questions in brief:               4x4=16
a)      Mention four chief characteristics of Business economics.
b)      What is demand? Mention the assumptions which are necessary for law of demand analysis.
c)       Write four factors on which supply of a commodity depends.
d)      Write short notes on internal economics.

3.       Explain how economic theories are applied to Business Economics. 11
Or
Explain the basic problems of an economic system. 11

4.       Explain the percentage or proportional method of measuring price elasticity of demand. The price of per kilogram mango is Rs. 20 and demand for it is 40 kilograms. Now price of mango falls to Rs. 16 per kilogram and demand for mango increases to 44 kilograms. Find out price elasticity of demand using percentage or proportional method. 5+6=11
Or
What is price elasticity of demand? Explain the importance of price elasticity of demand. 4+7=11

5.       What is the law of variable proportions? Explain the law of variable proportions with the help of suitable diagram. 4+8=12
Or
Explain the iso – product curve with the help of suitable diagram. Mention the properties of iso – product curve. 6+6=12

6.       What are the objectives of a business firm? Explain the profit maximization hypothesis. 4+7=11
Or
What are the characteristics of perfect competition market? Explain how price is determined under perfect competition market. 4+7=11

7.       What are the necessary conditions for price discrimination? How does a discriminating monopoly determine output and price? 4+7=11
Or
Explain any two models applied for determining price under Oligopoly market. 11