B.Com In Financial Management SEM I 2018 2019 Nov 2019 BUSINESS ECONOMICS I Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate full marks

1. Q1 (A) State whether following statements are true of false.(Any Eight) 8 marks
   • (1) Function explains the relationship between two economic variables
   • (2) The perfectly inelastic demand curve is horizontal to X-axis
   • (3) Statistical methods of demand forecasting are more accurate and scientific
   • (4) The substitute goods have positive cross elasticity of demand
   • (5) Under law of variable proportion, the total product curve becomes negative in the third stage
   • (6) Internal economies of scale are termed as economies of large scale production
   • (7) Iso-quants are also known as equal product curve
   • (9) Advertisement expenditures are huge perfectly competitive firm
   • (10) In case of multi-products, demand interrelationship influences the pricing
   • (b) Match the following (Any seven) 7 Promotional elasticity of demand Slope of Iso-quant Marginal Rate of Technical Substitution Selling cost and product differentiation Prof. Chamberlin Concept of Group i. | Analyses the impact of a decision on investment and production
2. Q10 | Transfer pricing | Arises due to growth of large scale
3. Q2 (A) Define income elasticity of demand and discuss the practical importance of income elasticity of demand 8 marks
   • (B) Explain the nature of demand curve under imperfect competition market. 7
   • (C) The following are the annual sales of bicycles from the period 2001 to
4. Q1 Find the trend value of sales by using the three yearly moving average 6 marks
5. Q2 What are the advantages of moving average method? 2 marks
   • (D) What is demand forecasting? Explain fully the consumer survey method. 7
6. Q3 (A) Explain the laws of returns to scale with the help of Iso-quants. 8 marks
   • (B) What are economies of scale? Discuss the types of external economies 7
   • (C) Calculate the short-run Total Fixed Cost, Total Variable Cost, Average Cost 8 and Marginal Cost from the following cost schedule
   • (D) Explain with the help of suitable diagram linear break-even analysis and 7 discuss the uses of break- even analysis
7. Q4 (A) Discuss the short-run equilibrium of price and output under the monopolist
   • (B) How does the industry attain equilibrium of price and output under 7 perfect competition in long-run?
   • (C) Explain the concept of price rigidity with the help of suitable diagram. 8
   • (D) “Cartel aims at joint profit maximisation”. Explain. 7
8. Q5 (A) Discuss the advantages and disadvantages of marginal-cost pricing method. 8 marks
   • (B) Explain how monopolists practices the different forms of price discrimination. 7 Write short notes (Any Three) 15
   • (a) Nature of business economics
   • (b) Time series method of demand forecasting
   • (c) Expansion path
   • (d) Price leadership
   • (e) Transfer pricing

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