ADL 04 Managerial Economics AM3
Assignment - A
Question 1. Distinguish between the following:
(i) Industry demand and Firm (Company) demand,
(ii) Short-run demand and Long run demand, and
(iii) Durable goods' demand and Non-durable goods demand.
Question 2. What are the problems faced in determining the demand for a durable good? Illustrate with example of demand for households refrigerator or television set.
Question 3. Analyse the method by which a firm can allocate the given advertising budget between different media of advertisement.
Question 4. What kind of relationship would you postulate between short-run and long-run average cost curves when these are not Ushaped as suggested by the modern theories?
Question 5. How do demand forecasting methods for new products vary from those for established products?
Assignment - B
Question 1. What are the different methods of measuring national income? Which methods have been followed in India?
Question 2. What do you understand by the investment multiplier? In what way does it defend the policy of public works on the part of the state during business depression?
Question 3. Discuss the various phases of business cycle:
(i) Are cyclical fluctuations necessary for economic growth?
(ii) Suggest appropriate fiscal and monetary policies for depression.
Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment. The yearly volume of output is 15,000 units. The selling price and cost per unit are shown below:
Selling price $200
Direct material $35
Direct labor 50
Variable overhead 25
Variable selling expenses 25
Fixed selling expenses 15 150
Unit profit before tax $ 50
Management is evaluating the alternative of performing the necessary customizing to allow Electron Control to sell its output directly to