MBA 02 M.B.A. DEGREE EXAMINATION, DECEMBER 2012/ JANUARY 2013. First Semester General, Finance, Marketing, HRM, International Business, Retail Management Tourism (2012-13 batch only) Paper Il - MANAGERIAL ECONOMICS ‘Time : Three hours Maximum : 100 marks PART A— (6 x6=30 marks) ‘Answer any FIVE questions, 1. State the meaning and characteristice of managerial economic 2. Discuss the various determinants of demand. 3, What are the exceptions to the law of demand? 4. Explain the characteristics of oligopoly 5. Mlustrate short range and long range costs with suitable examples.10. nL. 2. 13. M4 6 16. What are the differences between perfect competition and monopoly? Explain. 17, Discuss the advantages of price discriminations. ‘Write « note on fiacal and monetary policies. PART B— (6 10= 60 marks) Answer any FIVE questions. Explain the relationship of Managerial Economics with other disciplines, Explain demand the factors influencing elasticity of of market structure, Discus the various typ How price is fixed in perfect competition? Explain. Explain any two methods used for determining rational income, Write note on the economic indi Discuss the advantages of globalization. What do you mean by FDI? What are its merits? Explain the factors influencing FDI. 2 MBAO2 R PART C— (1 20= 20 marks) Caso Study - Compulsory Describe the effects of each of the following managerial decisions or economic influences on the value of tho firm: (@) The firm is required to install ‘equipments to reduce air pollution. () Through heavy expenditures on advertising the firn’s marketing department increases sles eubstantially. (©) The production department purchases new ‘equipments that lowers manufacturing costs (@ The firm raises prices. Quantity demanded fn the short run is unaffected, but in the Tonger run, unit sales are expected to decline. (©) The Federal Reserve System takes actions that lower interest atos dramatically. (An expected increase in inflation cau generally higher interest ratos, and, hence the discount rate increases,