BCom FY BCom Sem 2 BCom Sem 2 (2021 2022) Apr 2022 ECONOMICS Question Paper - Mumbai University | munotes

Questions asked in this paper

• 4. Figures to the right indicate full marks

1. Q1 Choose the correct option and rewrite the statements. 50 marks
   • 1. Afirm produces an equilibrium output where its
   • a. AR=AC
   • b. MR=MC
   • 2. Demand curve of a firm in perfect competition is
   • a. horizontal
   • b. vertical
   • c. upward
   • 3. Total revenue = Price or AR
   • a. an equilibrium output
   • b. no of units produced
   • 4. In perfect competition, AR =
   • a. MR
   • 5. A firm in the perfect competition is a
   • a. Price maker
   • b. price taker
   • c. price regulator When TR > TC then a firm in the perfect competition earn
   • a. excess profit
   • b. normal Profit
   • c. loss
   • 7. In market structure there is only one seller
   • a. monopoly
   • b. oligopoly
   • 8. In the long run monopoly firm usually earns
   • a. excess profit
   • b. normal Profit :
   • c. loss
   • 9. Inthe short run, firm, Total Cost = Fixed Cost +
   • a. Variable cost
   • b. Average Cost
   • c. Marginal cost
   • 10. Product sold in monopolistic competition is
   • a. homogenous
   • b. differentiated
   • c. inferior
   • 11. A firm in a monopolistic market require to incur
   • a. Production cost
   • b. selling cost
   • c. both
   • 12. An economy functions efficiently when
   • b. MC
   • 13. The concept of Kink Demand Curve developed by
   • a. Paul Sweezy
   • 14. In an oligopoly market, price remains
   • a. regulated
   • b. rigid
   • c. flexible
   • 15. There are degrees of price discrimination
   • a. three
   • b. two
   • c. four
   • 16. degree price discrimination takes place when different prices are charged in different markets which are geographically at a distance
   • a. Third
   • b. Second,
   • c. Fourth
   • 17. Dumping resulting in international price discrimination is refers
   • a. Persistent
   • b. Predatory
   • c. Sporadic
   • 18. Marginal Cost Pricing is followed by
   • c. Public undertaking
   • 19. In the formula P= C (1+M), C represents
   • 20. pricing is a pricing strategy that uses various product class
   • a. Multiple- product
   • b. Marginal cost
   • c. Full cost
   • 21. Capital expenditure decisions are often
   • a. difficult
   • b. irreversible
   • c. simple
   • 22. A project is profitable if NPV is
   • a. Zero
   • b. One
   • c. Positive
   • 23. In the Pay-Back period formula P =< , R represents
   • 24. The NPV method based on the principle of
   • a. discounting
   • b. addition
   • c. subtraction
   • 25. When NPV is positive, IRR will be than the marginal cost of
   • a. more,
   • b. equals
   • c. less
2. Q2 Attempt any one from the following 10M
   • a. Discuss various market structures
   • b. Explain the equilibrium of a monopoly in the short as well as in long run
   • c. Compare Perfect Competition and Monopoly
3. Q3 Attempt any one from the following 10M
   • a. What is selling cost? What are its effects?
   • b. Explain the meaning and features of oligopoly market structure
   • c. Discuss the role of advertisement \ Q4. Attempt any one from the following 10M
   • a. What is price discrimination? What are the different degrees of
   • b. Discuss the various conditions for price discrimination
   • c. Explain the ‘Marginal Cost Pricing’ with suitable diagram
4. Q5 Attempt any one from the following 10M
   • a. Explain the meaning and importance of Capital Budgeting
   • b. Examine the Net Present Value method of project evaluation with suitable
   • c. A business firm has to select a project from four alternative projects, all of which involve the same capital expenditure of Rs. The average net annual return expected from these projects are as below: Calculate the Pay-back period and rank it
5. Q6 Write short notes on: (any TWO) 10M
   • b. Sources of monopoly power
   • c. Transfer Pricing
   • d. Steps in Capital Budgeting

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