(General / Speciality)
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
(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
(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
(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
(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
(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