Download BU (Bangalore University) MBA (Master of Business Administration) 1st Semester 2016 Feb Economics for Managers Question Paper
1 Semester M.B.A. Degree Examlnatlon. February 2016
{CBCS} (2014.15 and Onwards)
MANAGEMENT
Paper - 1.1 : Economics for Managers
Time :3 Haurs Max. Marks : 70
SECTION ? A
Answerany?ve qu astions. Each question ca nies tlve marks. [5x5=25}
1
24
9.0190?
. Give the maln characteristics of the tsoproduct curve.
The monopolist is able to gain super normal profit tn the long run. Briefly explain
this stateme nt.
. Discuss the factors which account for increasing returns to scale.
What Is opportunity cost ? Explain with production possibility curves ?
Discuss the appllcabin?ty of managerial economics in decision making.
What is price alasticlty ? As a resutt of 10 percent fall in price of goods. its
demand rises from 100 units to 120 units. Find cutthe priCe elasthity of demand.
How is the measurement of national income done in India ? Describe its main
diffiCuIties.
SECTION - B
Answer any three of the fol Iowlng questions. Each question carries 1 0 marks. [3x10=30}
8. Explain the producer's equilibrlum postman with the help of Isoquants.
9. Which kind of market structure does the restaurant Industry belong to ? Justify
10
your answer. Explain the market equilibrium of Restau rants in the short run and
long run wlth suitable diagrams.
. From the following table determine numerically the best level of Output for the
monopolistby
1) Totatapproach 2) Marginalapproam.
Price In Rs. 20 20 18 16 14 12 10 8
Units 0 1 2 3 ?4 5 6
TC (TotalCost) 10 25 35 42 50 60 72 87
A110.
PG - 1 076 IIIIIIIIIIIIIIIIIIII
11. Write short notes on any two of the following :
1] Innovation theory of profit
2} Discriminating monopoly
3) Kinked demand on rve.
SECTION - C
Case Study{compulsory}: (15:11:15)
12. The consumption of Rolex bands watches is viewed as a signal of status and
wealth, and whose price, expe nslve by norm al standards. enhances the value of
such a slgnat. It virtually eve ryone owns a Rolex. it is by de?nitlon not prestigiOus
(perceived unlque value). The role-playing aspects and the social value of brands
can be instru mental tn the declslon to buy (perceived social value). For a brand
which satis?es an emotional desire such as Rolex brand, a product?s Subjective
intangible benefits such as aesthetic appeal is clearly determlnlng the brand
selection (perceived hedonlc vaiue}. Rolex is derived part1y from the teehnbcal
superiorlty and the extreme care that takes place durlng the production process.
For instance. a Rolex Sea-dwellerworks 1 .220 meters undemater and is hand-
crafted (percelved quality value]. Translated into marketing terms, consumers
develop prestige meanings for brands based upon interactions with people (e .g..
asle andlor peer reference group), object properties (e.g.. best quality). and
hedonlc needs. The demand curve of Rolex ls less elastic because of status
attached to them due to high price. Consumer of Rolex brand measures the
satisfaction derived not by the utility value. but by social status.
Questions :
1 } Do you think Rolex band is an example of conspicuous consumption of Veblen
Goods ?
2) Demand curve for Rolex brand should be downward sloping or upward ?
Draw a hypothetical demand cu we.
3) Is this an exception of law of demand ? Why ?
This post was last modified on 28 January 2020