MG 2452 —ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING
Time : Three hours Maximum : 100 Marks
Answer ALL questions
PART A — (10 × 2 = 20 Marks)
1. Define Managerial Economics.
2. Define the concept of Firm.
3. State law of supply with diagram.
4. Define Elasticity of Demand.
5. What do you mean by Money cost and Real cost?
6. Give two examples for implicit cost and explicit cost.
7. State Capital Budgeting and Investment with example.
8. Explain Internal Rate of Return.
9. When do firm adopt Marginal Cost pricing?
10. Mention any two advantages of cost plus pricing.
PART B — (5 × 16 = 80 Marks)
11. (a) (i) Explain the relationship of Managerial Economics with other disciplines. [Marks 4]
(ii) Discuss in detail the Nature of Managerial Economics. [Marks 12] Or
(b) (i) "Managerial Economics is Economics applied in Decision Making"– Discuss. [Marks 8]
(ii) Explain the goals of the firm. [Marks 8]
12. (a) (i) Define law of demand and explain types of demand with diagram.[Marks10 ] (ii) Why does the demand curve slopes downward? [Marks 6]
(b) (i) What are the reasons for the exceptions of the Demand Curve? Explain. [Marks 8]
(ii) Describe the Elasticity of Supply. [Marks 8]
13. (a) (i) Write a short note on Isoquant and its types. [Marks 10] (ii) Elucidate the returns to scale. [Marks 6]
(b) (i) Describe cost of production in the long run average cost curve. [Marks 8] (ii) What are the factors affecting production function? Discuss. [Marks 8]
14. (a) (i) Write a note on cost-oriented pricing. [Marks 10] (ii) Explain common pricing practices in Retail Trade. [Marks 6] Or
(b) (i) Describe price Discriminations. [Marks 7]
(ii) Explain the limitations of the Marginal cost pricing. [Marks 9]
15. (a) (i) Write briefly on the limitations of financial statements. [Marks 8] (ii) Give the meaning of Ratio...