Dibrugarh University Question Papers - Business Economics (May' 2014)

2014 (May)

COMMERCE

(General / Speciality)

Course: 202

(Business Economics)

Full Marks: 80

Pass Marks: 32

Time: 3 hours

The figures in the margin indicate full marks for the questions.

1.    Answer as directed:                                                                                                       1x8=8

a)      Making successful forecast is one of the responsibilities of a Managerial Economist.  (Write True / False)

b)      Price mechanism is based on two strong opposite forces.     (Write True / False)

c)       Perfect elasticity of demand curve is parallel / vertical to the base.(Choose the correct answer )

d)      ‘Nature of the commodity’ is not a factor which determines elasticity of supply. (Write True / False)

e)      Iso-product curve should never be horizontal or vertical along base or OX-axis. (Write True / False)

f)       What is production function?

g)      How many production firms are there in a monopoly market?

h)      Under which market form a firm is a price taker?

2. Answer the following questions in brief:                                                                                                                4x4=16

(a) Mention four characteristics of Business Economics.

(b) Give four justifications of downward slope of demand curve.

(c) Explain the concepts of short-run and long-run in production function.

(d) What do you mean by ‘price leadership’?

3.    (a) What is price mechanism? Discuss the importance of price mechanism in business economics.                             4+7=11

Or

(b) Discuss the various problems of business economics.                                                                      11

4.    (a) Define price elasticity of demand. Discuss the factors determining the price elasticity of demand.                      4+7=11

Or

(b) Define elasticity of supply. Discuss the factors determining the elasticity of supply.                   4+7=11

5.    (a) What is iso-product curve? Discuss its main characteristics.                    4+7=11

Or

(b) What is called production expansion path? Discuss how it can be expressed with the help of budget line and iso-product curve.                                  4+7=11

6.    (a) State the features of a perfectly competitive market. Explain the importance of perfect competitive market.                                                                                                6+6=12

Or

(b) Discuss the equilibrium price determination in the long-run under perfect competition with the help of suitable diagram.                                                              12

7.    (a) What is price discrimination? Discuss the possibilities of price discrimination under monopoly market.                              3+8=11

Or

(b) What is oligopoly market? Discuss how the price is determined under oligopoly market with the help of kinked demand curve model.                                   3+8=11