BCom FY BCom Sem 1 Bcom Sem1 2018 To 2019 Nov 2019 BUSINESS ECONOMICS I Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q1 All Questions are compulsory
2. Q2 All questions have internal choices
3. Q3 Use of simple calculator is permitted
4. Q4 Figures to the right indicate full marks
5. Q1 (A) Select the best answer from the given options and rewrite the statement (Any Ten). 10 marks
6. Q1 Incremental principle states that an investment decision is profitable if
   • a) revenue increases more than cost
   • b) cost reduces more than revenue
   • c) both a) and b)
   • d) None of the above li) The market supply schedule shows relationship between price and quantity
   • a) inverse
   • b) direct
   • c) no
   • d) None of these ili) In case of normal goods, demand.curve is
   • a) upward sloping
   • b) downward sloping
   • iv). Kinked demand curve is observed in market
   • a) Perfect competition
   • c) Monopolistic Competition
   • d) Oligopoly
   • v) If demand 1s price elastic, then
   • a) arise in price will raise total revenue a fall in price will raise total revenue
   • c) a fall in price will increase the quantity demanded
   • d) arise in price won't have any effect on total revenues
   • vi) Which of the following is a limitation of consumer clinic method of demand
   • b) Expensive
   • c) Neither a nor b
   • d) Both a and b
   • vii) Short run production function includes
   • c) both fixed and variable factors
   • d) None of the above The narrowing distance between successive isoquants denotes
   • a) Increasing returns to scale
   • b) Decreasing returns to scale
   • c) Constant returns to scale
   • d) None of the above
   • ix) Which of the following is an example of Internal Economies of Scale?
   • a) Labour Economies
   • b) Technical Economies
   • c) Managerial Economies
   • d) All of the above
   • x) In the short run, the slope of TC curve is the same as slope of
   • a) AVC curve
   • b) TEC curve
   • c) TVC curve
   • d) AFC curve
   • xi) The difference between private and social cost is due to
   • a) opportunity cost
   • d) accounting errors Xil) refers to an unavoidable cost which cannot be recovered
   • a) Opportunity cost
   • b) Sunk cost
   • c) Real cost
   • d) Implicit cost
7. Q1 B) Write whether the following statements are true or false (Any Ten) 10 marks
   • i. Demand is desire backed by willingness and ability to pay li. Opportunity costs can always be measured in terms of money
   • iii. Under monopoly market, when TR is increasing MR is negative
   • iv. When the demand is perfectly elastic, the demand curve will be a vertical straight line
   • v. Demand curve under monopoly is perfectly inelastic
   • vi. Long term forecasts are required for capital investments
   • vii. Technology is variable in long run production function
   • viii. MRTS is measured as AK/ AL
   • ix. A firm experiences increasing returns of scale due to technological advancements
   • x. Implicit costs are measured as opportunity cost
   • xi. Learning curve expresses the decline in average cost due to better experience
   • xii. MC=AC when AC is minimum
8. Q2 Attempt A and B OR C and D
   • A) Discuss the scope of study of Business Economics. 07
   • B) Given the following data calculate TR, AR, and MR. Also identify the market structure 08 and state the relationship between TR, AR and MR
   • C) Write an explanatory note on the use of marginal analysis in decision making in 07
   • D) The demand function for is given as Qd = 40 --0.1P and its supply function 08 is given as Qs = 20 + 0.2P. Make a schedule of demand and supply at prices Rs.100/-, Rs.200/, Rs. 300/- and Rs.400/-. Find the equilibrium price and quantity
9. Q3 Attempt A and BOR C and D
   • A). State and explain the law of demand. Write the assumptions and exceptions to the law 07
   • B) Describe the nature of demand curve under perfect competition and monopolistic 08
   • C) What is demand forecasting? What is the significance of demand forecasting? 07
   • D) A movie theatre charged Rs.100/- per ticket and sold 500 tickets per show. When the 08 price of tickets was raised to Rs. 125/- the theatre was able to sell only 450 tickets Estimate price elasticity of demand for movie tickets. Is it beneficial for the theatre to raise the price? Justify your answer
10. Q4 Attempt A and B OR C and D
    • A) Define isoquants. What are the properties of isoquants? 07
    • B) What is meant by diseconomies of scale? Discuss the various internal and external 08 diseconomies of scale
    • C) What is meant by Economies of Scope? How is it different from Economies of Scale? 07
    • D) The following table shows total product of a firm due to increase in labour input used in 08 combination with a fixed input of capital:
11. Q1 Calculate average product and marginal product
    • ii) Name and mark the three stages of law of variable proportions in the table In which stage will a rational producer operate? Justify your answer
12. Q5 Attempt A and B OR C and D
    • A) Explain the nature and relationship between AFC, AVC, ATC and MC curves of a firm. 07
    • C) What is meant by break -even point? How is break-even point determined? 07
    • D) For a hypothetical firm, if price of product is is Rs.5000/ and AVC is 08
13. Q1 Calculate breakeven output for this firm At the original TFC and AVC, how does breakeven quantity change if price rises to
    • ii) At the original price and TFC, what will be the breakeven quantity if AVC rises to
    • iv) At the original price and AVC, what will be the break even quantity if TFC rises to
14. Q6 Attempt A and Write Short Notes on any four:
    • A) Define income elasticity of demand. Explain the degrees of income elasticity of demand 10
    • B) Derive the long run average cost curve and write its features. 10 Write Short Notes on any four 20
15. Q1 Functions and equations
    • ii. Promotional elasticity of demand
    • v. Accounting and economic cost
    • vi. Applications of break-even analysis Please check whether you have got the right question paper
16. Q2 Tara
    • a) Gell
    • H) are
    • a) ae
    • S) ate fe
    • a) Ga
    • a. ae a
17. Q92 see (Economies of scope) HA? Ha of (break even point) at

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