Dibrugarh University (M.Com - Distance) - Managerial Economics (Aug' 2009)

1. (a) “ The Purpose of managerial economics is to show how economic analysis can be used in formulating business policies”. – Comment on the above statement. 16


(b) Write short notes on the following: 8x2 = 16

(i) Equi-Marginal Concept

(ii) Opportunity Cost.

2. (a) What are the determinants of demand for consumer’s non-durable and durable goods? Why is the demand for durable goods less stable than the demand for non-durable goods? 5+5+6=16


(b) what do you mean by elasticity of demand? Explain the significance of elasticity of demand in managerial decision making. 6+10=16

3. (a) What consideration would you take while forecasting demand for producer’s goods? – Explain.


(b) Discuss in brief the various statistical techniques used for demand forecasting. 16

4. (a) What do you understand by price discrimination? Discuss the advantages and disadvantages of different types of price discrimination. 5+11=16


(b) Explain the method of marginal cost pricing. Also state the strengths and weakness of marginal cost pricing. 6+10=16

5. (a) What is meant by trade cycle? Explain the process of the boom, depression and the recovery phases of trade cycle. 4+4+4+4=16


(b) Write short notes on: 8x2=16

(i) Types of inflation

(ii) Factors responsible for business cycle