2015 (May)
COMMERCE
(General / Speciality)
Course: 202
Time: 3 hours
(Business Economics)
Full Marks: 80
Pass marks: 24
The figures in
the margin indicate full marks for the questions
(New Course)
1. Answer
the following as directed : 1x8=8
(i)
Elasticity of demand at the midpoint of a
straight line demand curve is >1 / 1 / <1. (Choose the correct answer.)
(ii)
Perfectly inelastic demand curve is parallel /
vertical to the vertical axis. (Choose the correct answer.)
(iii)
An assumption to the law of supply is ‘there
will be no change in input prices’.
(State True or False)
(iv)
Production function shows the physical
relationship between _____ and _____. (Fill in the blanks)
(v)
Internal economies are enjoyed by a business
firm due to a decrease / increase in its scale of operation. (Choose the
correct answer)
(vi)
Under perfectly competitive market AR is not
equal MR. (State True or False)
(vii) The
short-run supply curve of a firm under perfect competition always slopes
downward / upward. (Choose the correct answer)
(viii) Market
price in a long-run / short-run / very short-run price. (Choose the correct
answer)
2. Write
on the following in brief : 4x4=16
(a) Basic
problems of an economic system.
(b) Cross-elasticity
of demand.
(c) Properties
of isoquants.
(d) Normal
profit and supernormal profit.
3.
(a) Discuss the nature and scope of business
economics. 14
Or
(b) Explain the working of price
mechanism. Discuss whether price mechanism can be ensure maximum social
welfare. 10+4=14
4.
(a) Explain the concept of income elasticity of
demand. Discuss the importance of income elasticity of demand concept in
business economics. 8+6=14
Or
(b) What are factors that
determine price elasticity of demand? What role does price elasticity of demand
play in the decision-making by business firms? 8+6=14
5.
(a) Explain the law of variable proportions with
suitable diagram. In which stage a rational producer will seek to produce? 10+4=14
Or
(b) Discuss the internal and external economies
of a business firm. 14
6.
(a) Explain Baumol’s sales revenue maximization
hypothesis and mention some of the criticisms leveled against it. 9+5=14
Or
(b) Discuss the features of perfectly competitive market.
Explain the process of price output determination in the short-run under such
market. 5+6=14
(Old Course)
Full Marks: 80
Pass Marks: 32
1. Answer
the following as directed : 1x8=8
(i)
Business Economics is micro / macro economics in
nature. (Choose the correct answer)
(ii) The
mechanism of price determination by the free play of forces of demand and
supply is knows as _____ mechanism. ( Fill in the blank )
(iii) The
marginal rate of technical substitution increases as more and more of one input
is substituted for the other input. ( State True or False )
(iv) A
firm under perfect competition can / cannot determine the price. (Choose the
correct answer)
(v) Very
short-run price is knows as normal price. (State True or False)
(vi) A
firm under perfect competition in the long-run earns only _____ profit. (Fill in the blank)
(vii) Price
discrimination will be profitable only when the monopolist funds that the price
elasticity of demand for his product is different in the different markets. (
State True or False )
(viii) When
the firms under oligopoly reach and understanding in price and output
determination, it is knows as pure oligopoly / collusive oligopoly. ( Choose
the correct answer )
2. Write
on the following in brief : 4x4=16
(a) Relationship
between business economics and traditional economics.
(b) Isoquants.
(c) Price
discrimination.
(d) Baumol’s
sales revenue maximization hypothesis.
3.
(a) Discuss the characteristics and scope of
business economics. 6+5=11
Or
(b) Discuss the basic problems of
an economic system. Explain how are the basic problems solved through the price
mechanism. 6+5=11
4.
(a) What is meant by price elasticity of demand?
How is the price elasticity of demand measured on a linear demand curve? 3+8=11
Or
(b) Define cross-elasticity of demand. Discuss its
importance in business economics. 5+6=11
5. (a)
State the assumptions of the law of diminishing returns. Explain the theory
with the help of suitable diagram. 3+8=11
Or
(b) Discuss the internal economies and diseconomies of a
business firm. 8+3=11
6.
(a) Explain the profit maximization objective of
business firms. On what grounds it has been criticized in recent times? 8+4=12
Or
(b) What are the features of
perfect competition? Explain how is the price outputs determined under such
market in the short –run. 4+8=12
7.
(a) Discuss the differences between monopoly and
perfect competition. Explain how are the price and output determined under
monopoly. 3+8=11
Or
(b) Discuss the characteristics
of oligopoly. Explain the price output determination process under ‘price
leadership’ in oligopoly. 3+8=11