Download BU (Bangalore University) MBA (Master of Business Administration) 1st Semester 2018 Feb Economics for Managers Question Paper
{CECE} {2014-15 and anarde}
MANAGEMENT
Paper ? 1.1 : Eeenbmiee ter Managers
Mex. Meme : TD
Anewereny tweet the fellewihg queetiene. Each queetien carrieeflve marks.
{5:15:25}
1. Write the kinds bf Eebhbmie deeielehe of firm.
2. What are ieequante '? Dieeuee its impedance.
9"
Explain the relationship behueen Marginal Revenue. Average Revenue and Total
Fievenue curves.
Explain the phenomenon of decreasing return ti:- scale. Specify its reaebne.
Brie?y discuee the degrees of price discrimination with suitable examples.
What is investment in netien ? Explain eutehmeue and induced investments.
i?lP?FJ?P
Brie?y diebuse various twee of pricing etrategiee.
SECTION- B
Anewereny three of the following questions. Each queetieh earriee 1 ill marks.
- {3:113:31}
EL What is elasticity of demand 1' What are its types ? In the fbilewing eehditiene,
explain the nature and type of elasticity.
*- Priee of apple falls by 10% and demand increases by 15%.
. 3% increase in the element: bi eetfee and we; increase in price ettee.
Price et ear inereaeee by 20% and demand 'Df petrol decreases by 10%.
- 15% increase in the eeneumptien et imite and 2M: increase in income.
F.T.D.
PG?T?? IIIIII HIII
9. An investigation inte the demand tereeelere in titre tewne hee re5u|ted In the
feIIeMng date :
Population etthetewn in Iakhe Humbereteeelere demanded
5 E
? 135
B 110
11 15D
14 192}
Flt a linear regreeeien ef y en 2 end eetimete the demand of meters fer e tewn
wIth e Deputatien of 25 lathe.
1D. In the light at theories of e buelneee ?rm. Diecuee
Bren and March Behevieuret theert.r
?Mllierneen'e model
. Beumel'e hypothesis at sales retren ue rnettlt'nleetlen
*- Men?Ie hypothesis.
11. Discuss the main characteristics at Menepdietie competition. Explain with the
help of diagrams. short run and lung run equflibrium under menepetletie
eempetltim.
12. Bumpulmry case study. {15:1:15}
Kermaker. e erlettet player playing In lntemetienel Teete, wee empleyed wtth
Lintee Sheee Cerearetten. Kerrneker feeed a personal prehlem when playing
and practising In the humid climate in India and eeme et the eeuntriee ehreed ?
the epune sheee whieh he were became ett't?rtlyr etme after he took tethe?eld,
and by luneh time they.I started smelling badly. He enquired ef hie fellow players
whether this wee eemrnen er his unique problem. He came to knew that this
was a eemmen problem though. of mu ree. 1Irenring in intensity.I end thetiang ef
sweating. He eleeeerne to knew that, like hin'lI the etherteltew players had elee
expenmented with eII Itinde of shoes eveilebIe In the market. but with hardly any
eueeeee.
II IIIII III1 e. PG?T??
Karmelrerhreught this problem to the notice at his rewritten}...r end was pereueeltre
eneugh te metre the eemeeny Interested in his prehlem. The r.::r:lmt::ertglr wanted
to understand.
I Was there a reel eeneumer need for e highlyr Impretred kind of ehee fer the
purpeee ??
- Had the eempeny neeeeeeryr teehnele-gieel teeilitiee and Scientific relztilihtf te
detreIep the ereduet ?
was the size of the market ter this product le rge enough to metre the new
product eent mercielhr viehle ?
To confirm fer itself, the mmpenyr undertook market research in 1trelritzuue terms
like pereenel interviews. queetienneiree. etc. The market research eentirmed
the epinieri expressed by Kenneker.
The rzer'rtpnenyr eeeerleined that since it was already in ehee buelneee it had
neeeeeery' edentitt: end teehneiegteel lnlreetruetureteteke up the preleet. The
beeie problems were, hewetrer. the justification ef ereree of rupees which would
go tn ter reeeereh. develeprnent and mass production et eheee. will the likely
demand he adequate eneugh to justify this investment and ehetre all. the
pre?tehilityet the venture. The eempenyrfeund. through the sewers: that besides
the eeneumer need fer the product and the technical capacity et the ?rm to
undertake the preduetien et eueh a product. there was a large enough potential
meritet fer the ereduet it produced at a mess eeele.
After the product development wee eeeempliehed. a pilot test was eendueted
by supplying smell eluentitytr et theee unnamed shoes and given free to eerne
players. However. the results were not encouraging heeauee the eheee were
ten thin te protect the feet from damage during play. So. the preduet was back
to the prerztuet develeprnent depe rtrnent. After e year's e?ertet the eempeny
came eut with e retreletienertlr design at shoes. which were thielr enough to
protect the feet hutthln and light enough to prevent sweating et thefeet In humid
dimates.
The eeeeu ntente kept the reeerd et eeete at each stage of the preduct
develeprnent. The eeeeuntente. with the help at the advertising greup. developed
a price heeed en estimatee et hew rrten'gtr uftheee new ehe-ee eeulcl sell in ternte
of total potential rnerI-ret {EU Ielrh eheee everyr year} and hem menu; pleyere
weuttt take to the new_ehe-ee.
The mm?al?w teet marketed the product in the states of Maharashtra.
Hernetelte. Delhi and West Bengal. The product wee named heeptreeh and
priced at Rs. 35D In the teat market. The reepenee wee quite dieeeureglhg.
The consumers liked the new shoes but net its priee.
PG?765 4- IIIIII IIIIIIII
The company again got stuck with a probtem. Is the company charging more
than what it should charge ? Are the consumers poor enough not to pay the
price ? Such kinds of questions were raised in the company meetings. There
was however. an opinion expressed during the discussions that the price of
Rs. 350 was ?xed on the basis of production for test marketing, but when shoes
would be mass produced. the production costs would come down.
Questions:
a) What kind of pricing technique was used while pricing ?
b) Was there any indication of using penetration or skimming pricing in the
pricing decision of Lintas ?
c) What should the company do next regarding the price ?
This post was last modified on 28 January 2020